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This is not an official version. POINT IN TIME |
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From Royal Assent date June 24, 2010 to Royal Assent date December 15, 2010 |
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Important to Note: This particular point in time document does not take into consideration the commencement date of the individual sections or subsections as outlined in the amending statutes. SNL2000 CHAPTER I-1.1 INCOME TAX ACT, 2000 Amended: 2001 c4; 2001 cN-3.1 s2; 2002 c5; 2003 c4; 2003 c6; 2004 c16; CHAPTER I-1.1 AN ACT RESPECTING INCOME TAX (Assented to
PART I
PART II
PART II.1
PART
PART IV
PART V Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Income Tax Act, 2000 . Interpretation 2. (1) In this Act (a) "agreeing province" means a province that has entered into an agreement with the Government of Canada under which the Government of Canada shall collect taxes payable under that province's income tax statute and shall make payments to that province in respect of the taxes so collected; (b) "collection agreement" means an agreement entered into under subsection 89 (1); (c) "court" means the Trial Division of the Supreme Court; (d) "Department of Finance" means (i) the Department of Finance of the province, or (ii) where a collection agreement is in effect
(A)
in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of (B) in relation to other matters, the Canada Customs and Revenue Agency; (e) "deputy head" and "assistant deputy head" mean (i) the Deputy Minister of Finance of the province, (ii) the Assistant Deputy Minister of Finance of the province, and
(iii)
where a collection agreement is in effect, the Commissioner of Customs and Revenue appointed under section 25 of the Canada
Customs and Revenue Agency Act
(
(f)
"federal Act" means the Income Tax Act
( (g) "federal regulations" means the regulations made under the federal Act; (h) "income tax statute" means, in relation to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; (i) "individual" means a person other than a corporation and, except in section 47, includes a trust or estate; (j) "loss" means a loss as determined in accordance with and for the purpose of the federal Act; (k) "minister" means (i) the minister appointed under the Executive Council Act to administer this Act, or (ii) where a collection agreement is in effect, means
(A)
in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of
(B)
in relation to other matters, the Minister of National Revenue for
(l)
"Minister of National Revenue" means the Minister of National Revenue for (m) "permanent establishment" means permanent establishment as defined in the federal regulations and where the federal regulations contain more than one definition, the one that applies is the one that most closely resembles its use for the purpose of this Act; (n) "prescribed" means
(i)
in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister of Finance or the Minister of National Revenue for
(ii)
in the case of the manner of making or filing an election, authorized by the Minister of Finance or the Minister of National Revenue for (iii) where the word is used in a provision of the federal Act that applies for the purpose of this Act, what is prescribed within the meaning assigned by subsection 248(1) of the federal Act, and (iv) in other cases, prescribed by the regulations;
(o)
"Receiver General" means the Receiver General of (p) "regulations" means regulations made by the Lieutenant-Governor in Council under this Act; (q) "return" means a return of income required to be filed under this Act; (r) "tax" means the income tax payable under and in accordance with this Act; and (s) "taxation year" of a person means the period determined under the federal Act as a taxation year. (2) A reference in this Act to "last day of the taxation year" shall, in the case of an individual who resided in Canada in the taxation year but ceased to reside in Canada before the last day of the taxation year, be considered to be a reference to the last day in the taxation year on which he or she resided in Canada. (3) The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by him or her as fixed by assessment or reassessment subject to variation on objection or on appeal in accordance with this Act, or Part I of the federal Act. (4) For the purpose of this Act, except where they vary from the definitions contained in this section, the definitions and interpretations contained in or made by the federal Act or regulations apply. (5) In a case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.
(6)
Subsections 104(1) and (2) of the federal Act apply for the purpose of this Act. (7) Subsection 248(11) of the federal Act applies for the purpose of this Act.
(8)
Section 257 of the federal Act applies for the purpose of this Act. (9) Where a provision, in this subsection referred to as "that section", of the federal Act or the federal regulations is made applicable for the purpose of this Act, that section, as amended from time to time before or after the commencement of this subsection, applies with those changes that the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act and in applying that section for the purpose of this Act, in addition to other changes required by the circumstances, (a) a reference in that section to tax under Part I of the federal Act shall be read as a reference to tax under this Act; (b) where that section contains a reference to tax under Parts I.1 to XIV of the federal Act, that section shall be read without reference in it to tax under those Parts and without reference to a portion of that section which applies only to or in respect of tax under those Parts; (c) a reference in that section to a particular provision of the federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act; (d) a reference in that section to a particular provision of the federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act; (e) where that section contains a reference to one or more of Parts I.1 to XIV of the federal Act or to a provision in those Parts, that section shall be read without reference in it to that Part or without reference to that provision and without reference to a portion of that section that applies only because of the application of those Parts or the application of a provision in those Parts; (f) where that section contains a reference to the Bankruptcy and Insolvency Act , that section shall be read without reference in it to the Bankruptcy and Insolvency Act ; (g) a reference in that section to a federal regulation that applies for the purpose of this Act shall be read as a reference to the regulation as it applies for the purpose of this Act; (h) a reference in that section to "under this Act" or "under an Act of a province with which the minister has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to under this Act; and (i) a reference in that section to a word or expression set out in the left hand column of the following table shall be read as a reference to the word or expression set out opposite to it in the right hand column of the following table: Table
2000 cI-1.1 s2; 2001 cN-3.1 s2; 2005 c10 s1; 2006 c40 s21 Application of federal provisions and amendment 3. (1) In this section, (a) "federal amendment" means an amendment to a provision of the federal Act that applies for the purpose of this Act; (b) "federal application rule" means a provision of an Act of Parliament that makes a federal provision, a federal amendment, or the repeal of a federal provision, apply (i) to specified taxation years, (ii) to specified fiscal periods, (iii) after a specified time, or (iv) to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods; and (c) "federal provision" means a provision of the federal Act that applies for the purpose of this Act. (2) Where a federal application rule governs the application of a federal provision, for the purpose of applying the federal provision for the purpose of this Act, the provision shall be applied in accordance with the federal application rule as though the Legislature had enacted that rule to govern the application of the provision for the purpose of this Act. (3) Where a federal application rule governs the application of a federal amendment amending a federal provision, for the purpose of applying that provision for the purpose of this Act, that provision shall be applied as though the federal amendment had been enacted by the Legislature and, at the time of the enactment, the Legislature had enacted that rule to govern the application of the amendment for the purpose of this Act. (4) Where a federal provision or a federal amendment comes into force, or is considered to come into force, on a particular day, and no federal application rule governs its application, the provision or amendment is considered, for the purpose of applying it for the purpose of this Act, to come into force on that day. (5) Where a federal provision is repealed and another provision is not substituted for it, the federal provision ceases to apply for the purpose of this Act (a) where the repeal is governed by a federal application rule, in accordance with that rule; and (b) where the repeal is not governed by a federal application rule, on the day the repeal comes into force. (6) For the purpose of this Act, where a particular federal provision is replaced by another provision, or is repealed and another provision substituted for it, the other provision is considered to be a continuation of the particular federal provision and the replacing or the repeal and substitution is considered to be an amendment to the particular federal provision. Exemption from tax
4.
No tax is payable under this Act by a person for a period when
(a)
no tax is payable under Part I of the federal Act for the period on the person's taxable income because of subsection 149(1) of the federal Act; or
(b)
that person was a non-resident-owned investment corporation. Definitions
5.
In sections
6
to
33
,
(a)
"appropriate percentage" for a taxation year means the lowest percentage referred to in section
7
that is applicable in determining tax payable under this Part for the year;
(b)
"highest percentage" for a taxation year means the highest percentage referred to in section
7
that is applicable in determining tax payable under this Part for the year;
(c)
"income earned in the taxation year in the province" means income earned in the year in the province as determined in accordance with federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act;
(d)
"income earned in the taxation year outside the province" means income for the year minus income earned in the taxation year in the province;
(e)
"income for the year" means
(i)
in the case of an individual resident in Canada during only part of the taxation year in respect of whom section 114 of the federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual's income for the year as computed under subsection 120(3) of the federal Act, and
(ii)
in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purpose of, the federal Act; (f) "provincial percentage" for a taxation year means the appropriate percentage divided by the appropriate percentage as defined in the federal Act, expressed as a percentage that is rounded to the nearest one tenth or, where the result is equidistant from 2 consecutive one-tenths, to the higher one-tenth; and
(g)
"tax payable under the federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the federal Act in respect of the individual for the year. Liability for tax 6. (1) An income tax shall be paid as required by this Act for each taxation year by every individual (a) who was resident in the province on the last day of the taxation year; or (b) who, not being resident in the province on the last day of the taxation year, had income earned in the taxation year in the province. (2) Notwithstanding a provision contained in a public or private Act or an agreement, whether enacted or entered into before or after December 15, 1961, granting or providing for the exemption of a corporation named in the Act or agreement from payment of taxes, whether or not those taxes are specified, an income tax shall be paid as required for each taxation year by every corporation that maintained a permanent establishment in the province at any time in the year. 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
( (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. Amount of tax payable 7. (1) The tax payable under this Part for a taxation year by an individual on the individuals 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. CPP/QPP disability benefits and other lump sum payments for previous years
8.
There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula A x B where A
is the provincial percentage; and B
is the total of,
(a)
the amount added under section 120.3 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year;
(b)
the amount added under section 120.31 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year; and
(c)
the amount added under section 40 of the Income Tax Application Rules
( Personal credits
9.
(1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula A x B where A
is the appropriate percentage for the year; and B
is the total
o
f,
(a)
in the case of an individual who at any time in the year is a married person or common law partner who supports the individual's spouse or common law partner and is not living separate and apart from the spouse or common law partner by reason of a breakdown of their marriage or common law partnership, an amount equal to the total of
(i)
$7,410, and
(ii)
the amount determined by the formula
$6,055 - (C - $606) where
C
is the greater of $606 and the income of the individual's spouse or common law partner for the year or, where the individual and the individual's spouse or common law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common law partnership, the spouse's or common law partner's income for the year while married or in a common law partnership and not so separated;
(b)
in the case of an individual who does not claim a deduction for the year because of paragraph (a) and who, at any time in the year,
(i)
is an unmarried person, or a married person or a person in a common law partnership who neither supported nor lived with the spouse or common law partner and is not supported by the spouse or common law partner, and
(ii)
whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment in which the individual lives and actually supports in that establishment a person who, at that time, is
(A)
except in the case of a child of the individual, resident in
(B)
wholly dependent for support on the individual, or the individual and the other person or persons,
(C)
related to the individual, and
(D)
except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent by reason of mental or physical infirmity, an amount equal to the total of
(iii)
$7,410, and
(iv)
the amount determined by the formula
$6,055 - (D - $606) where
D
is the greater of $606 and the dependent person's income for the year;
(c)
except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $7,410;
(d)
in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of a particular person
(i)
who has attained the age of 18 years before that time,
(ii)
who is
(A)
the individual's child or grandchild, or
(B)
resident in
(iii)
who is
(A)
the individual's parent or grandparent and has attained the age of 65 years before that time, or
(B)
dependent on the individual because of the particular person's mental or physical infirmity, the amount determined by the formula
$13,853 - D.1 where
D.1
is the greater of $11,500 and the particular person's income for the year;
(e)
for each dependant of the individual for the year who
(i)
attained the age of 18 years before the end of the year, and
(ii)
was dependent on the individual because of mental or physical infirmity, the amount determined by the formula
$7,410 - E where
E
is the greater of $5,057 and the dependant's income for the year; and
(f)
in the case of an individual entitled to a deduction in respect of a person because of paragraph (b) and who would also be entitled, but for paragraph 118(4)(c) of the federal Act, as that provision applies to this Act, to a deduction because of paragraph (d) or (e) in respect of the person, the amount by which the amount that would be determined under paragraph (d) or (e), exceeds the amount determined under paragraph (b) in respect of the person.
(2)
For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula A x ($5,000 - B) where A
is the appropriate percentage for the year; and B
is 15% of the amount, if any, by which the individual's income for the year would exceed $25,921 if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income. (3) 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 determined by the formula A x B where A is the appropriate percentage for the year; and B is the lesser of $1,000 and (a) where the individual has attained the age of 65 years before the end of the year, the pension income received by the individual in the year; and (b) where the individual has not attained the age of 65 years before the end of the year, the qualified pension income received by the individual in the year.
(4)
Subsections 118(4), (5) and (6) of the federal Act apply to subsection (1) and subsections 118(7) and (8) of the federal Act apply to subsection (3). (5) Notwithstanding section 6.1, the amount of $5,000 referred to in subsection (2) shall not be adjusted before the 2011 taxation year. 2000 cI-1.1 s9; 2005 c10 s3; 2010 c7 s2 Charitable and other gifts
10.
(1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula (A x B) + [C x (D - B)] where A
is the appropriate percentage for the year; B
is the lesser of $200 and the individual's total gifts for the year; C
is the highest percentage for the year; and D
is the individual's total gifts used to determine the deducted amount under subsection 118.1(3) of the federal Act by the individual for the year.
(2)
Section 118.1 and subsection 143(3.1) of the federal Act apply for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.1(3) of the federal Act. 2000 cI-1.1 s10; 2008 c47 s7; 2010 c3 s1 Medical expense credit 11. (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula A x ((B-C) + D) where A is the appropriate percentage for the year; B is the amount used in the formula in subsection 118.2(1) of the federal Act for B in computing the individual's deduction under that section for the year; C is the smaller of $1,614 and 3% of the individual's income for the year; and D is the amount that would be determined in the formula in subsection 118.2(1) of the federal Act for D in computing the individual's deduction under that section for the year if the reference to $1,813 in the description of F in that subsection is read as a reference to $1,614.
(2)
Section 118.2 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.2(1) of the federal Act. Credit for mental or physical impairment
12.
(1) Where an individual is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula A x (B + C) where A
is the appropriate percentage for the year; B
is $5,000; and C is (a) where the individual has not attained the age of 18 years before the end of the year, the amount, if any, by which (i) $2,353 exceeds (ii) the amount, if any, by which (A) the total of all amounts each of which is an amount paid in the year for the care or supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 of the federal Act for a taxation year exceeds (B) $2,000; and (b) in any other case, zero.
(2)
Sections 118.3 and 118.4 of the federal Act apply for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.3(1) of the federal Act. (3) Notwithstanding subsection (2), for the purpose of computing the tax payable under this Part for a taxation year ending after 2003 by an individual who is entitled to a deduction under subsection 118.3(2) of the federal Act for the taxation year in respect of a person referred to in that subsection, there may be deducted the amount, if any, by which (a) the amount deductible under subsection (1) in computing that persons tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under section 6 to pay tax for the taxation year; exceeds (b) the amount of that persons tax payable under this Part for the taxation year if the person were liable under section 6 to pay tax for the taxation year, computed before any deductions under this Part other than deductions referred to in sections 9 and 17. 2000 cI-1.1 s12; 2003 c6 s1; 2005 c10 s5 Credit for 2001-2003 12.1 Notwithstanding section 12, for the purpose of computing an individuals tax payable under this Part for a taxation year ending before 2004, where the person referred to in subsection 118.3(2) of the federal Act did not reside in the province on the last day of the taxation year, there may deducted for that taxation year an amount determined by the formula A/B x C where A is the appropriate percentage; B is the appropriate percentage under the federal Act; and C is (a) for the 2003 taxation year, the amount that the individual is entitled to deduct under subsection 118.3(2) of the federal Act for the year; and (b) for the 2001 and 2002 taxation years, the amount that the individual is entitled to deduct under subsection 118.3(2) of the federal Act for the year if determined without reference to the amount for C in the formula provided in that subsection. Unused tuition and education amounts 2001-2003 12.2 (1) For the purpose of determining the amount that may be deducted under subsection 15(1) for a taxation year ending before 2004 by an individual who did not reside in the province on the last day of the preceding taxation year, the individuals unused tuition and the education tax credits at the end of the preceding taxation year shall be the lesser of (a) the amount that would be the individuals unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the federal Act if the percentage applied under sections 118.5 and 118.6 of the federal Act had been the appropriate percentage for the year instead of the appropriate percentage as defined in that Act; and (b) the amount that would be the individuals unused tuition and education tax credits at the end of the preceding taxation year as determined under a statutory section similar to section 118.61 of the federal Act or of another province or territory of Canada in which the individual resided on the last day of the taxation year for the preceding taxation year provided that the percentage applied under that section had been the appropriate percentage for the year. (2) For the purpose of subsection (1), where there is no section of a statute of a province in which the individual resided on the last day of the taxation year for the preceding taxation year that is similar to section 118.61 of the federal Act, the individuals unused tuition and education tax credits for the preceding taxation year shall be deemed to equal the amount determined under paragraph (1)(a). (3) For the purpose of subsection (1), (a) the amount referred to in paragraph (1)(a) shall be used only to the extent that it has not been used in claiming a credit under section 118.5, 118.6 or 118.61 of the federal Act or in determining credits transferred under section 118.81 of the federal Act for a taxation year; and (b) the amount referred to in paragraph (1)(b) shall be used only to the extent that it has not been used in claiming a credit under a statutory section similar to section 118.5, 118.6 or 118.61 of the federal Act or of another province or territory of Canada or in determining credits transferred under a section that is similar to section 118.81 of the federal Act for a taxation year of an income tax statute or similar Act of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year. Transfer tax credits 2001-2003 12.3 (1) Notwithstanding section 18, this section shall apply to a taxation year ending before 2004. (2) Sections 118.8 and 118.81 of the federal Act apply for the purpose of this Act, except that the reference to $850, or the amount that it is amended to read, in subparagraph (ii) of the description of A in paragraph 118.81(a) of the federal Act shall be read as a reference to the product obtained by multiplying $5,000 by the appropriate percentage for the taxation year. (3) Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individuals spouse or common law partner deducts an amount for the year under paragraph 9(1)(a) or subsection 18(1) of this Act, section 118 or 118.8 of the federal Act or similar provisions of an income tax statute of another province or territory, is the only person designated in writing by the individual for the year for the purpose of this subsection and no other person is designated for the purpose of section 118.9 of the federal Act or a similar provision of an income tax statute of another province or territory, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent. (4) Notwithstanding subsections (2) and (3) for the purpose of the application of section 118.81 of the federal Act to this Act, where a person did not reside in the province on the last day of the taxation year, the tuition and education tax credits transferred for the taxation year by the person to an individual shall be equal to the lesser of (a) the amount determined by the formula A/B x C where A is the appropriate percentage under this Act; B is the appropriate percentage under the federal Act; and C is the amount determined in respect of the person under section 118.81 of the federal Act for the purpose of computing the persons tax payable under Part I of the federal Act for the taxation year; and (b) the amount determined by the formula D/E x F where D is the appropriate percentage under this Act; E is the appropriate percentage under the federal Act; and F is the amount determined in respect of the person for the taxation year as determined under a section of an income tax statute or similar Act of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year that is similar to section 118.81 of the federal Act. (5) For the purpose of subsection (4), where there is no section that is similar to section 118.81 of the federal Act in an enactment of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year, the individuals unused tuition and education tax credits at the end of the preceding taxation year shall be deemed to equal the amount determined under paragraph (4)(a). (6) Notwithstanding subsections (2) and (3), for the purpose of section 118.8 of the federal Act, as that section applies for the purposes of this Act, where in a taxation year an individuals spouse or common law partner did not reside in the province on the last day of the taxation year, (a) the amount for B in the formula in section 118.8 of the federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the amount determined by the formula G/H x I where G is the appropriate percentage under this Act; H is the appropriate percentage under the federal Act; and I is the amount determined for the individual for B in the formula in section 118.8 of the federal Act for the purpose of computing the individuals tax payable under Part I of the federal Act for the taxation year; and (b) the amount for C in the formula in section 118.8 of the federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the amount determined by the formula J/K x L where J is the appropriate percentage under this Act; K is the appropriate percentage under the federal Act; and L is the amount determined for the individual for C in the formula in section 118.8 of the federal Act for the purpose of computing the individuals tax payable under Part I of the federal Act for the taxation year. Tuition credit
13.
Section 118.5 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act. Education credit
14.
(1) Where an individual is entitled to deduct an amount under subsection 118.6(2) of the federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula A x B where A
is the appropriate percentage for the year; and B
is the total of the products obtained when
(a)
$200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and
(b)
$60 is multiplied by the number of months in the year, other than months described in paragraph (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.
(2)
Section 118.6 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.6(2) of the federal Act. Unused tuition and education amounts 15. (1) For the purpose of computing an individuals tax payable under this Part for a taxation year, there may deducted the lesser of the (a) individuals unused tuition and education credits at the end of the preceding taxation year; and (b) amount that would be the individuals tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and section 9, 12, 17 or 17.1. (2) An individuals unused tuition and education tax credits at the end of the taxation year is the amount determined by the formula A + (B - C) - (D + E) where A is the individuals unused tuition and education credits at the end of the preceding taxation year; B is the total of all amounts, each of which maybe deducted under sections 13 and 14 in computing the individuals tax payable under this Part for the year; C is the lesser of the value of B and the amount that would be the individuals tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and section 9, 12, 17 or 17.1; D is the amount that the individual may deduct under subsection (1) for the year; and E is the tuition and education tax credits transferred for the year by the individual to the individuals spouse, common law partner, parent or grandparent. (3) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after the year 2003 by an individual who was not resident in the province on the last day of the preceding taxation year, the individuals unused tuition and education tax credits at the end of the preceding taxation year shall be equal to the amount that would be the individuals unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the federal Act if the percentage applied under sections 118.5 and 118.6 of the federal Act had been the appropriate percentage as defined in that Act.
(4)
For the purpose of subsection (3), the amounts mentioned in that subsection shall be used only to the extent that they have not been used in claiming a credit under section 118.5, 118.6 or 118.61 of the federal Act, or in determining credits transferred under section 118.81 of the federal Act for a taxation year. Interest on student loan tax credit
16.
Section 118.62 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act. Student loan tax credit 16.1 (1) Where, in a taxation year, an individuals taxable income does not exceed $50,000, there may be deducted from the tax otherwise payable by that individual an amount determined by the following formula: A x B where A is the amount of principal paid in that year with respect to a loan issued under the Student Financial Assistance Act ; and B is the appropriate tax credit factor listed in Column A of the schedule to this Act. (2) Notwithstanding subsection (1), where an individual is eligible to claim an amount under paragraph 9(1)(b) with respect to his or her child or an amount under section 12: B is the appropriate tax credit factor listed in Column B of the Schedule to this Act. (3) Subsections (1) and (2) shall not apply to a return filed by an individual under subsections 70(2), 104(23) or 150(4) of the federal Act. (4) Subsections (1) and (2) shall apply only to a return filed by an individual for the 2003 taxation year. EI premium and CPP contribution credit
17.
Section 118.7 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act. Adoption credit 17.1 (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 determined by the formula: A x B where A is the appropriate percentage for the year; and B is the amount that would be determined in the formula in subsection 118.01(2) of the federal Act for B in computing the individuals deduction under that section for the year, if the amount in paragraph 118.01(2)(a) of the federal Act is read as $10,000. (2) Section 118.01 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.01(2) of the federal Act. Tax credit transfer 18. (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time during the year, is a married person or is in a common law partnership, other than an individual who, by reason of a breakdown of their marriage or common law partnership, is living separate and apart from his or her spouse or common law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula A + B - C where A is the tuition and education tax credits transferred for the year by the spouse or common law partner to the individual; B is the total of all amounts, each of which is deductible under subsections 9(2) and 9(3) and section 12 in computing the spouses or common law partners tax payable under this Part for the year, or that would be so deductible if the spouse or common law partner were liable under section 6 to pay tax for the year; and C is the amount, if any, by which (a) the amount that would be the spouses or common law partners tax payable under this Part for the year, or that would be so payable under this Part for the year if the spouse or common law partner were liable under section 6 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under paragraph 9(1)(c) and sections 15 and 17; exceeds (b) the lesser of (i) the total of all amounts that may be deducted under sections 13 and 14 in computing the spouses or common law partners tax payable under this Part for the year, or that would be so deductible if the spouse or common law partner were liable under section 6 to pay tax for the year, and (ii) the amount that would be the spouses or common law partners tax payable under this Part for the year, or that would be so payable under this Part for the year if the spouse or common law partner were liable under section 6 to pay tax for the year, if no amount were deductible under this Part other than an amount deductible under sections 9, 12, 15 and 17. (2) Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individuals spouse or common law partner deducts an amount for the year under paragraph 9(1)(a) or subsection 18(1) of this Act, section 118 or 118.8 of the federal Act or similar provisions of an income tax statute of another province or territory, is the only person designated in writing by the individual for the year for the purpose of this subsection and no other person is designated for the purpose of section 118.9 of the federal Act, or a similar provision of an income tax statute of another province or territory, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent. (3) In this section, the tuition and education tax credits transferred for a taxation year by a person to an individual is the lesser of (a) the amount determined by the formula A - B where A is the lesser of (i) the total of all amounts that may be deducted under sections 13 and 14 in computing the persons tax payable under this Part for the year, or that would be so deductible if the person were liable under section 6 to pay tax for the year, and (ii) the amount obtained by multiplying $5,000 by the appropriate percentage for the taxation year; and B is the amount that would be the persons tax payable under this Part for the year if no amount were deductible under this Part other than an amount deductible under sections 9, 12, 15 and 17; and (b) the amount for the year that the person designates in writing for the purpose of subsection (1) or (2). Minimum tax carry-over
19.
There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula A x B where A
is the provincial percentage; and B
is the amount that the individual may deduct for the taxation year under section 120.2 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act. 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 individuals 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 individuals income for the year. (2) Subsection (1) shall only apply to a dividend received on or after the coming into force of this section. Overseas employment tax credit 21. 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 provincial percentage of the amount that the individual may deduct under section 122.3 of the federal Act for that taxation year. Low income reduction 21.1 (1) In this section (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 individual's qualified relation for the year, if any, calculated as if no amount was included in respect of (i) a gain from a disposition of property to which section 79 of the federal Act applies in computing that income, or
(ii)
benefits under the Universal Child Care Benefit Act
( and the income of a person who is a non-resident of (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 (c) "qualified relation" of an individual for a taxation year means the person who, at the end of the year, is the individuals cohabiting spouse or common law partner within the meaning assigned by section 122.6 of the federal Act. (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 individuals adjusted income for the year; exceeds (b) $15,911; 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, $26,625, 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. (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 individuals tax payable under this Act for the year; and B = is the amount that would be the eligible individuals tax payable under this Act for the year if no amount were deductible under this section (5) Where computing an individuals 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 individuals tax payable. 2004 c19 s1; 2005 c10 s10; 2007 c12 s3; 2007 c21 s3; 2009 c30 s6 Part-year residents
22.
Section 118.91 of the federal Act applies for the purpose of this Act. Ordering of credits
23.
(1) Section 118.92 of the federal Act applies for the purpose of this Act. (2) Where computing an individuals tax payable under this Act, the following sections shall be applied in the listed order: (a) subsections 9(1) and (2); (b) section 17; (b.1) subsection 9(3); (b.2) section 17.1; (c) section 12; (d) section15; (e) section 13; (f) section 14; (g) section 18; (h) section 11; (i) section 10; (j) section 16; (k) section 20; (l) section 21; (m) section 19; (n) section 33; (o) section 47; (p) section 45.1; (q) section 46; and (r) section 21.1 2000 cI-1.1 s23; 2004 c16 s2; 2005 c10 s11; 2005 c44 s2; 2007 c12 s4 Credits in separate returns
24.
Section 118.93 of the federal Act applies for the purpose of this Act. Tax payable by non-resident
25.
Section 118.94 of the federal Act applies for the purpose of this Act. Credits in year of bankruptcy
26.
Section 118.95 of the federal Act applies for the purpose of this Act
and shall be read to include a reference to section 16.1 of the Act
. Tax payable by inter vivos
trust
27.
Section 122 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read,
in subsection 122(1) of the federal Act shall be read, for the purpose of this Act, as a reference
to the "highest percentage". Bankrupt individuals
28.
Subsection 128(2) of the federal Act applies for the purpose of this Act. Tax on split income
29.
Section 120.4 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 120.4(2) of the federal Act shall be read, for the purpose of this Act, as a reference to the "highest percentage". Minimum tax
30.
Where an individual is required to pay tax under section 127.5 of the federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula A x B where A
is the provincial percentage; and B
is the amount that would be the individual's additional tax for the taxation year determined under subsection 120.2(3) of the federal Act. Multi-jurisdictional and non-resident individuals
31.
Notwithstanding sections
5
to
30
, the tax payable under sections
6
to
30
for a taxation year by an individual
(a)
who resided in the province on the last day of the taxation year but had income earned in the taxation year outside the province; or
(b)
who did not reside in the province on the last day of the taxation year but had income earned in the taxation year in the province, shall be the amount determined by the formula A x B
where A
is the tax otherwise payable by the individual under sections
6
to
30
; B
is the individual's income earned in the taxation year in the province; and C
is the individual's income for the year. Pro-rating where income earned outside province 31.1 Where an individual resided in the province on the last day of a taxation year but had income earned in the taxation year outside the province, the individual may deduct from the amount of tax otherwise payable for the taxation year as determined under section 31 an amount determined by the formula A x B/C where A is the total of all amounts each of which is deductible under subsection 9(3) and sections 17.1, 20 and 21 by the individual for the taxation year; B is the individuals income earned in the taxation year outside the province; and C is the individuals income for the year. 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. Foreign tax deduction 33. (1) Where an individual resided in the province on the last day of a taxation year and had income for that year that included income earned in a country other than Canada in respect of which non-business income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by him or her under this Act for that taxation year an amount equal to the lesser of (a) the amount, if any, by which non-business income tax paid by the individual for the year to the government of the other country exceeds the amount (i) if section 127.5 of the federal Act does not apply to the individual for the taxation year, that is deductible from the individuals tax payable under Part I of the federal Act for that year under subsection 126(1) of the federal Act that is in respect of non-business income tax paid to the government of that country, or (ii) if section 127.5 of the federal Act applies to the individual for the taxation year, of the individuals special foreign tax credit for the year determined under section 127.54 of the federal Act that is in respect of non-business income tax paid to the government of that country; and
(b)
the proportion of the tax otherwise payable under this Act for that taxation year where (i) the amount, if any, by which the total of the individuals qualifying incomes exceeds the total of the individuals qualifying losses
(A)
for the year, if the individual is resident in
(B)
for the part of the year throughout which the individual is resident in from sources in that country, where (C) no businesses were carried out by the individual in that country, (D) no amount was deducted under subsection 91(5) of the federal Act in computing the individuals income for the year, and (E) the individuals income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect of it under paragraphs 122.3(1)(c) and (d) of the federal Act for the year, is of, (ii) the amount, if any, by which
(A)
if the individual was resident in (B) if the individual was not resident, in Canada at any time in the year the individuals income earned in the year in the province that is included in the amount determined under paragraph 114(a) of the federal Act in respect of the individual for the year, exceeds (C) the total of all amounts, each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) of the federal Act or deductible under paragraph 110(1)(d), (d.1), (d.2), (d.3),(f),(g) or (j) of the federal Act for the year, in computing the individuals taxable income for the year. (2) For the purposes of subsection (1) and paragraph 44(1)(b), non-business income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayers income for a taxation year is the non-business income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition "non-business income tax" in subsection 126(7) of the federal Act.
(3)
For the purpose of this section, where an individuals income for a taxation year includes income from sources in more than one country other than (4) For the purpose of this section and section 44
(a)
the government of the country other than (b) if income from a source in a particular country would be tax-exempt income except that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, that portion is deemed to be income from a separate source in the particular country. (5) In this section and section 44, "qualifying incomes", "qualifying losses" and "tax exempt income" shall have the same meaning as in subsection 126(7) of the federal Act. Harmonized sales tax credit 34. (1) In this section (a) "adjusted income", "cohabiting spouse or common law partner", "qualified dependant" and "qualified relation" have the meanings assigned to them under subsection 122.5(1) of the federal Act; (b) "eligible individual" means an eligible individual as defined in subsection 122.5(1) of the federal Act and who is resident in the province before the specified month; (c) "return of income" in respect of a person for a taxation year means, (i) for a person who is resident in the province at the end of the taxation year, the persons return of income, other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of the federal Act, that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under that Act for the taxation year, and (ii) in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the federal Minister of National Revenue; and (d) "specified month" means the month of October of the immediately following taxation year. (2) Notwithstanding subsection (1), a person is not an eligible individual, a qualified relation or a qualified dependant of an individual for a taxation year in relation to the specified month where that person (a) died before the specified month; (b) is at the beginning of the specified month a person described in paragraph 149(1)(a) or (b) of the federal Act; (c) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the specified month; and (d) is not a resident of the province at the beginning of the specified month. (3) Where a return of income is filed 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 calculated under subsection (4) shall be deemed to be an amount paid by the individual on account of the individuals tax payable under this Act for that year during the specified month. (4) 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 individuals adjusted income for the year exceeds $15,000; and (b) the amount calculated in accordance with the regulations. (5) Notwithstanding subsection (3), if an individual is a qualified relation of another individual, in relation to a specified month for a taxation year, only one of them is an eligible individual in relation to that month and if both of them claim to be eligible individuals, the individual that the Minister of National Revenue designates is the eligible individual in relation to that specified month. (6) Where a person eligible for payment under subsection 122.5(3) of the federal Act dies prior to the specified month, that persons qualified relation who has filed a return of income for the taxation year and applied for a payment under subsection 122.5(3) of the federal Act, is deemed to be the eligible individual for the purposes of subsections (3) and (4) for that taxation year and the amount payable for the specified month shall be deemed to be an amount paid on account of the persons qualified relations tax payable under this Act for the specified month. (7) An individual shall notify the Minister of National Revenue of the occurrence of any of the following events before the end of the month following the month in which the event occurs (a) the individual ceases to be an eligible individual; (b) a person becomes or ceases to be the individuals qualified relation; and (c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years. (8) For the purposes of this section, where, in a taxation year, an individual becomes bankrupt, the individuals income for that year shall include his or her income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy. No set off 35. (1) Notwithstanding section 60 of this Act, subsection 164(2) of the federal Act does not apply to an amount considered under subsection 34 (4) of this Act to be an amount paid by an individual on account of his or her tax payable under this Act for a taxation year. (2) Subsection (1) does not apply where the taxpayer's liability referred to in subsection 164(2) of the federal Act arose from the operation of paragraph 160.1(1)(a) of the federal Act with respect to an amount refunded to the taxpayer in excess of the amount to which the taxpayer was entitled under subsection 34 (4) of this Act. Date on which amount applied 36. Where a taxpayer has requested that an amount, considered under subsection 34 (4) of this Act to be an amount paid by an individual on account of his or her tax payable under this Act for a taxation year, be applied to a liability of the taxpayer and the taxpayer's return of income for the year is filed on or before the day it was required by section 150 of the federal Act to be filed, the amount shall be considered to have been applied on the day on which it would have been refunded if the taxpayer was not liable to make a payment to Her Majesty in right of Canada. Application 37. For the purpose of applying paragraph 2 (9)(c) of this Act, section 122.5 of the federal Act is considered to be the same as or similar to section 34 of this Act.
38.
(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
68
(1)(e).
(2)
Notwithstanding paragraph
2
(9)(i), 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 and Labrador.
(3)
An overpayment in the amount of the Newfoundland and Labrador child benefit on account of an individual's 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
(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 may specify a form to be used for the purpose of this section. 2000 cI-1.1 s38; 2001 cN-3.1 s2 Capital gains refund to mutual fund trust 39. (1) A mutual fund trust that is entitled to a refund under section 132 of the federal Act for a taxation year is entitled to receive, at the time and in the manner provided in section 132 of the federal Act for the refund under that section, a capital gains refund for the taxation year equal to, (a) where the mutual fund trust had no income earned in the taxation year outside the province, the product of the amount of the refund for the taxation year under section 132 of the federal Act multiplied by the percentage referred to in paragraph 5(f) to be used in computing the tax payable by the mutual fund trust under this section for the taxation year; or (b) where the mutual fund trust had income earned in the taxation year outside the province, that proportion of the amount that would be determined under paragraph (a), if all income earned in the taxation year by the mutual fund trust had been earned in the province, that the income earned by it in the taxation year in the province is of its total income for the taxation year. (2) Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the trust is liable or about to become liable to make a payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action. Corporation tax 40. (1) The tax payable by a corporation for a taxation year is 14% of the corporation's taxable income earned in the year in the province. (2) For the purpose of this section and sections 41 and 44 , "taxable income earned in the year in the province" means the taxable income earned in the year in the province by a corporation as determined in accordance with federal 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. (3) Notwithstanding subsection (1), where in a taxation year a corporation is eligible for a deduction under section 125 of the federal Act, the tax payable by that corporation under this Act for a taxation year is equal to the total of (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 (b) 14% of an amount calculated by deducting from the corporation's taxable income earned in the year in the province the amount allocated to the province under paragraph (a) in respect of the corporation for the year. (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. Small business tax holiday 40.1 (1) In this section (a) "active business" means an active business carried on by a corporation as defined in subsection 125(7) of the federal Act; (b) "new corporation" means a corporation that carries on a qualifying business, and
(i)
was incorporated under the Corporations Act
after March 31, 2003 and before (ii) with respect to a taxation year, is eligible to claim a deduction under subsection 125(1) of the federal Act; (c) "non-qualifying business" means a business (i) the principal purpose of which is (A) wholesale or retail trade, (B) real estate marketing or development, (C) oil and gas development or production, (D) mineral resource exploration, (E) fish harvesting and primary fish processing except the processing of underutilized species that the minister may designate, (F) to provide prepared food for consumption on or off the premises, or (G) the sale of alcoholic beverages for consumption on the premises, (ii) which is the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor, or (iii) which is engaged in personal services, managerial, administrative, financial, maintenance or similar business services, professional practices and trades, unless all or substantially all of those services relate to tourism, export or import activities that the minister may designate; (d) "north-east Avalon" means the towns of Bauline, Conception Bay South, Flatrock, Logy Bay-Middle Cove-Outer Cove, Paradise, Petty Harbour, Portugal Cove-St. Philip's, Pouch Cove and Torbay incorporated or continued under the Municipalities Act, 1999 , the City of Mount Pearl incorporated under the City of Mount Pearl Act and the City of St. John's incorporated under the City of St. John's Act ; and (e) "qualifying business" means a business, other than a non-qualifying business, that carries on an active business in the province in one or more of the following sectors: (i) technology, (ii) research and development, (iii) aquaculture, (iv) forestry and agrifoods, (v) manufacturing, (vi) processing, (vii) export, (viii) import replacement, (ix) tourism, or (x) cultural activities. (2) For the purposes of this section, individuals or corporations or both are related if they are related within the meaning of section 251 of the federal Act. (3) There may be deducted from the tax otherwise payable under this Part, for each of the first, second and third taxation years of operation of a new corporation, an amount not exceeding the tax otherwise payable under paragraph 40(3)(a) for the taxation year. (4) A new corporation that has maintained its establishment and operations outside the north-east Avalon for its first, second and third taxation years and maintains its establishment and operations there for the fourth and fifth years may deduct from the tax otherwise payable under this Part for each of the fourth and fifth taxation years of the corporation an amount equal to the tax otherwise payable under paragraph 40(3)(a) for the taxation year. (5) For the purpose of a deduction of tax under this section, a new corporation shall minimize its tax liability for the taxation year for which the deduction is claimed by claiming all allowable deductions and credits from tax otherwise payable. (6) A new corporation is considered to have maintained its establishment and operations outside the north-east Avalon if more than 50% of the total salaries and wages it paid in the taxation year were paid to persons reporting to work at an establishment outside the north-east Avalon. (7) A new corporation may apply for a deduction under subsection (3) or (4) on the form required by the minister and shall provide the information required by the minister. (8) Where the minister receives an application under subsection (7) and is satisfied that the new corporation qualifies for the deduction under this section, the minister shall issue a certificate to the corporation authorizing the deduction. (9) In order to claim a deduction for a taxation year under this section, a new corporation shall file the certificate referred to in subsection (8) with its annual return for the taxation year, as required by this Act. (10) A new corporation is not eligible for a certificate from the minister authorizing the deduction unless the corporation applies for the deduction within the 3 years immediately following the taxation year for which the deduction is being claimed. (11) A new corporation is not eligible for a deduction under this section for a taxation year where it, or a predecessor corporation within the meaning of section 87 of the federal Act, (a) was associated with another corporation within the meaning of section 256 of the federal Act, unless the minister waives this restriction with respect to the association with the other corporation; (b) carried on an active business in the taxation year by reason of being a member of a partnership, where another member of the partnership was not eligible for a deduction under subsection (3) or (4) for the taxation year; (c) was a beneficiary of a trust, where another beneficiary of the trust was not eligible for a deduction under subsection (3) or (4) for the taxation year; (d) carried on an active business in the taxation year by reason of being a co-venturer in a joint venture, where another co-venturer in the joint venture was not eligible for a deduction under subsection (3) or (4) for the taxation year; (e) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from, another corporation, called the "vendor", where the new corporation or the predecessor corporation, their shareholders, or persons related to the new corporation, the predecessor corporation or their shareholders, beneficially owned, directly or indirectly, more than 10% of the issued shares of a class of the capital stock of the vendor; or (f) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from, a sole proprietorship or partnership in respect of which the corporation, its shareholders, or persons related to it or its shareholders, beneficially owned the sole proprietorship or partnership. (12) Paragraphs (11)(e) and (f) apply only where the new corporation carries on the same or substantially the same business that was carried on by a corporation referred to in paragraph (11)(e) or a sole proprietorship or partnership referred to in paragraph (11)(f) except where the sole proprietorship or partnership carried on the business for a period of 90 days or less. (13) A corporation shall not be entitled to a deduction under this section for a taxation year where, as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred, or has been considered to have been transferred, either directly or indirectly, to the corporation, and it is reasonable for the minister to believe that one of the principal purposes of the transfer or considered transfer is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim. (14) A corporation is not entitled to a deduction under this section for a taxation year where, as a result of a disposition, a disposition considered to have been made or a series of dispositions of shares of a corporation, it is reasonable for the minister to believe that one of the principal purposes of the disposition, considered disposition or the series of dispositions is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim. (15) The Lieutenant-Governor in Council may make regulations (a) defining, restricting or enlarging the meaning of a word or expression used in this section; and (b) governing a deduction to be allowed under this section and restrictions, limitations, terms and conditions relating to a deduction. Manufacturing and processing profits deduction 41. (1) Where in a taxation year a portion of the taxable income earned in the year in the province by a corporation is Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, there may be deducted from the tax otherwise payable by the corporation under subsection 40 (1) or paragraph 40 (3)(b), whichever applies, 9% of the amount, if any, by which those manufacturing and processing profits earned in the year in the province by the corporation exceed the amount, if any, upon which tax is payable under paragraph 40 (3)(a) by the corporation for the year. (2) For the purpose of subsection (1), the manufacturing and processing profits earned in a taxation year in the province by a corporation are the Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, multiplied by the proportion that its taxable income earned in the year in the province bears to the total of all amounts each of which is its taxable income earned in the year in a province determined in accordance with federal 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. (3) Notwithstanding subsections (1) and (2), no deduction may be made under this section unless the corporation has engaged in manufacturing or processing in the taxation year from a permanent establishment in the province.
(4)
Subsection (3) is considered to have come into force on Research and development tax credit 42. (1) In this section (a) "eligible expenditure" means an expenditure in respect of scientific research carried out in the province made after 1995 by a taxpayer with a permanent establishment in the province that is a qualified expenditure under subsection 127(9) of the federal Act without reference to paragraph (d) of the definition of that term in that Act but, with respect to paragraph (h) of the definition of that term in that Act,
(i)
in the case of research and development tax credit claims filed under subsection 37(11) of the federal Act prior to (ii) in the case of research and development tax credit claims filed under subsection 37(11) of the federal Act on or after December 1, 2005, eligible expenditures shall not be reduced by government assistance except with respect to Harmonized Sales Tax and Goods and Services Tax input tax credits, considered under subsection 248(16) of the federal Act to be assistance from a government, claimed after December 31, 2003, and (iii) in the case of research and development tax credit claims filed under subsection 37(11) of the federal Act on or after December 1, 2005, eligible expenditures shall be reduced by contract payments received after December 31, 2003; and (b) "research and development tax credit" of a taxpayer at the end of a taxation year means the amount, if any, by which the total of (i) an amount equal to 15% of the total of all amounts each of which is an eligible expenditure made by the taxpayer in the year, or an eligible expenditure made in a previous taxation year, computed without reference to subsection 13(7.1) of the federal Act, and (ii) all amounts each of which is an amount included under subsection (5) or (6) included in computing the taxpayer's research and development tax credit at the end of the year, exceeds the total of all amounts each of which is an amount deducted under subsection (2) from the tax otherwise payable under this Act by the taxpayer for a previous taxation year or an amount applied or paid under subsection (3) by the minister in previous taxation years.
(1.1)
For the purpose of subparagraph (1)(a)(ii), reference to "Harmonized Sales Tax" means the harmonized sales tax defined in the Schedule to the Tax Agreement Act
and reference to "Goods and Services Tax" means the tax imposed or levied under Part IX of the Excise Tax Act
(Canada).
(1.2)
For the purpose of this section reference to "government assistance" in subsections 127(18), (19) and (20) of the federal Act does not include the research and development tax credit determined under this section. (2) A taxpayer may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of (a) its research and development tax credit at the end of the year; and (b) the tax otherwise payable by it under this Act for the year. (2.1) A taxpayer is not entitled to make a deduction under subsection (2) where the taxpayer does not file for the deduction on or before the day that is one year after the taxpayers filing due date for the particular taxation year to which the deduction relates. (3) The amount by which a taxpayer's research and development tax credit at the end of a taxation year exceeds the taxpayer's tax otherwise payable under this Act for the year may be applied by the minister to pay a (a) tax, interest or penalty owing by the taxpayer for that or a prior taxation year under this Act, the income statute of an agreeing province or the federal Act; (b) contribution, penalty or interest owing by the taxpayer for that or a prior taxation year as a result of payments required from the taxpayer under the Canada Pension Plan Act (Canada); and
(c)
premium, interest or penalty owing by the taxpayer for that or a prior taxation year under the Employment Insurance Act
( and the part of the amount not so applied shall be paid to the taxpayer. (4) A taxpayer referred to in subsection (3) does not include a taxpayer that is exempt from tax under section 149 of the federal Act. (5) Where in a particular taxation year of a taxpayer which is a beneficiary under a trust, an amount would, if the trust were a taxpayer, be, by virtue of subparagraph (1)(b)(ii), included in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the taxpayer's share shall be included in computing the research and development tax credit of the taxpayer at the end of that particular taxation year. (6) Where in a particular taxation year of a taxpayer which is a member of a partnership, an amount would, if the partnership were a taxpayer, be, by virtue of subparagraph (1)(b)(ii), included in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the taxpayer's share shall be included in computing the research and development tax credit of the taxpayer at the end of that particular taxation year. (7) Where, after 1995, 2 or more taxpayers amalgamate within the meaning of subsection 87(1) of the federal Act and one or more of the taxpayers had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purpose of determining the research and development tax credit of the new taxpayer for a taxation year preceding any taxation year of the new taxpayer, the new taxpayer shall be considered to be the same taxpayer as, and a continuation of, each such predecessor taxpayer. (8) Where after 1995 (a) a subsidiary, within the meaning assigned by subsection 88(1) of the federal Act, is wound up and that subsection applies to the winding-up; and (b) at the end of the last taxation year of the subsidiary, it had a research and development tax credit any portion of which was not deducted in computing its tax otherwise payable under this Act by it for the year, for the purpose of applying this section, the parent shall be considered to be the same person as, and a continuation of, the subsidiary. 2000 cI-1.1 s42; 2005 c10 s15; 2007 c12 s6; 2010 c3 s2 Capital gains refund to mutual fund corporations 43. (1) Where an amount is to be refunded to a corporation in respect of a taxation year, under section 131 of the federal Act, the minister shall at the time and in the manner that is provided in that section, refund to the corporation an amount, in this section referred to as its "capital gains refund" for the year, equal to the least of (a) that proportion of the amount of the refund for the year calculated under subsection 131(2) of the federal Act that (i) the percentage referred to in subsection 40 (1) for the year is of (ii) the percentage referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the federal Act; (b) the product of the percentage referred to in subsection 40 (1) by its taxed capital gains within the meaning assigned to that expression in subsection 130(3) of the federal Act for the year; (c) the product of the percentage referred to in subsection 40 (1) by its taxable income for the year; and (d) the tax otherwise payable by the corporation under this Act for the year. (2) For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where (a) the corporation's taxable income earned in the year in the province, is less than (b) the corporation's taxable income for the year, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under paragraph (a) is of the amount determined under paragraph (b). (3) Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the corporation is liable or about to become liable to make a payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action. Foreign tax credits 44. (1) Where the income for a taxation year of a corporation that maintained a permanent establishment in the province at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the federal Act from sources in a country other than Canada, in this section referred to as "foreign investment income", and where the corporation may deduct an amount under subsection 126(1) of the federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of (a) 14% of the product of (i) the foreign investment income of the corporation for the year from sources in the country, and (ii) that proportion that the corporation's taxable income earned in the year in the province is of the corporation's taxable income earned in the year; or (b) that proportion of the amount by which the part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada, except the tax or part of it that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount deductible by the corporation under subsection 126(1) of the federal Act in respect of that country that (i) the taxable income earned in the year in the province, is of (ii) the total of all amounts each of which is its taxable income earned in the year in a province as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in a year in a province" in subsection 124(4) of the federal Act.
(2)
Where the income of a corporation for a taxation year includes income from sources in more than one country other than Film or video tax credit 45. (1) A corporation producing an eligible film or video in the province may apply to the minister in the manner prescribed by regulation for a film or video industry tax credit. (2) The tax credit shall be calculated in a manner prescribed by regulation. (3) The tax credit shall be deducted against the tax which is otherwise payable under this Act. (4) Where the tax credit calculated in accordance with subsection (2) exceeds the tax otherwise payable under this Act, the minister may pay the amount of the excess to the corporation in a manner prescribed by regulation. Labour-sponsored venture capital tax credit 45.1 (1) Where, in respect of a taxation year, a taxpayer has been issued a tax credit certificate under section 8 of the Labour-Sponsored Venture Capital Tax Credit Act , there shall be deducted from the tax otherwise payable by that taxpayer in respect of that taxation year, an amount in accordance with that Act. (2) A taxpayer who is entitled to a deduction under this section shall file, with the taxpayers annual return for a taxation year in respect of which a deduction is claimed under this section, a copy of the tax credit certificate. (3) A taxpayer is not entitled to a deduction under this section unless the taxpayer files a return within 3 years after the end of the taxation year to which the deduction pertains. Equity tax credit 46. (1) An eligible investor may apply to the minister for a non refundable tax credit in respect of an eligible investment in an eligible corporation. (2) The minister may give a tax credit to a person who applies 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 an eligible investor, what corporation is an eligible corporation and what investments are eligible investments; (b) respecting the issuance of and the grounds for revocation of certificates of eligibility to corporations; (c) limiting the amounts which an eligible corporation may raise through the use of credits; (d) prescribing how funds raised may be used by a corporation; (e) respecting the wind-up and dissolution of an eligible corporation; (f) setting the amount of a tax credit that may be paid to an eligible investor; (g) setting limits on the amounts of eligible investments; (h) respecting the carrying forward or back of a credit; (i) respecting the holding period for an eligible investment; (j) prescribing penalties for failure to comply with the regulations; and (k) generally to give effect to the purpose of this section. 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. Political contribution deduction 47. (1) In this section (a) "candidate" means a person who is nominated as a candidate for an electoral district in accordance with Part I of the Elections Act, 1991; (b) "contribution" means a contribution made to a registered political party or a candidate under Part III of the Elections Act, 1991 and "contributor" means a person who makes a contribution under that Act; (c) "corporation" means a corporation incorporated under the laws of the province and a corporation having its head or other office or doing business or a part of it in the province; (d) "individual" means a natural person; (e) "receipt" means a receipt for a contribution issued under Part III of theElections Act, 1991 ; (f) "registered political party" means a political party that is registered under section 278 of the Elections Act, 1991 ; and (g) "tax otherwise payable under this Act" means the amount that would, but for this section, be the tax payable under this Act. (2) There may be deducted from the tax otherwise payable under this Act by a taxpayer who is an individual or a corporation for a taxation year in respect of the total of all amounts, each of which is the amount of a contribution of money made by the taxpayer in a year to a registered political party or a candidate, (a) 75% of the total if the total does not exceed $100; (b) $75 plus 50% of the amount by which the total exceeds $100 if the total exceeds $100 and does not exceed $550; or (c) $300 plus 33 1/3% of the amount by which the total exceeds $550 if the total exceeds $550, if each contribution that is included in the total is proven by filing with the minister a receipt signed by the chief financial officer of the registered political party or candidate. (3) The maximum allowable deduction under subsection (2) is $500. (4) An amount may not be deducted under subsection (2) with respect to a contribution to a candidate unless it was made during an election period as defined in theElections Act, 1991 and after his or her chief financial officer was appointed under that Act in the election in which he or she is a candidate. (5) For the purpose of this section, a contribution shall be considered to have been made on the date it is considered to have been made under Part III of theElections Act, 1991 . (6) Subject to the provisions of Part III of the Elections Act, 1991 every chief financial officer shall retain signed duplicates of all receipts issued by him or her. (7) Notwithstanding a provision of Part III of the Elections Act, 1991, for the purpose of this section the minister may examine and make copies of receipts or duplicates, and of a return, record, report or other document filed with the Chief Electoral Officer under Part III of the Elections Act, 1991 . (8) A person shall not file a false or deceptive receipt with the minister. Tax not payable 48. (1) Tax is not payable under this Act (a) by a person in respect of the person's taxable income on which no tax is payable under Part I of the federal Act because of section 149 of that Act; or (b) by a corporation in respect of its taxable income for a period throughout which it was a non-resident owned investment corporation, and, except where otherwise provided, definitions or descriptions in the federal Act applying to those persons apply, with the necessary changes, for the purpose of this Act. (2) Tax is not payable by a corporation that is by statute an agent of the Crown. Returns of income, assessments and withholding 49. Subsection 70(7), except the portion of it that is after paragraph (a), sections 150, 150.1 and 151, and subsections 152(1) to (3.1), (4) to (9), 153(1) to (3) and 156.1(4) to (9) of the federal Act apply for the purpose of this Act. Reassessment 50. (1) Where a collection agreement is in effect, notwithstanding the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is reassessed, the minister shall reassess, make additional assessments or assess tax, interest or penalties as the circumstances require.
(2)
Notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, the minister may redetermine the amount considered under subsection
34
(4) to be an amount paid by an individual on account of his or her tax payable under this Act for that year. Farmers and fishers 51. Section 155 of the federal Act applies for the purpose of this Act. Instalments by other individuals 52. Section 156 of the federal Act applies for the purpose of this Act. Payment by corporations 53. (1) Subsections 157(1), (2), (2.1) and (4) of the federal Act apply for the purpose of this Act. (2) Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the federal Act and that is required to make payments under subsection 157(1) of the federal Act as it applies for the purpose of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purpose of this Act. Returns, payments and interest 54. Subsection 70(2), 104(2), paragraph 104(23)(e), sections 158, 159 and 160, subsections 160.1(1), (1.1), (2.1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1), (2), (2.1), (2.2), (4), (4.01), (4.1), (5), (6), (6.1), (7), (9) and (11) of the federal Act apply for the purpose of this Act. Computing instalments 55. (1) Where an individual is considered under subsection 161(4) of the federal Act to be liable, in respect of tax payable under Part I of the federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the federal Act, notwithstanding subsection 161(4) of the federal Act, as it applies for the purpose of this Act, the individual is considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act. (2) Where an individual is considered under subsection 161(4.01) of the federal Act to be liable, in respect of tax payable under Part I of the federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the federal Act, notwithstanding subsection 161(4.01) of the federal Act, as it applies for the purpose of this Act, the individual is considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act. Amount on which instalment computed 56. Where a collection agreement is in effect and a taxpayer is considered under subsection 161(4) of the federal Act to be liable to pay, in respect of his or her tax payable under Part I of the federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4)(c) or (d) of the federal Act as it applies for the purpose of this Act, the taxpayer shall be considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of his or her tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act. Penalties 57. (1) Subsections 162(1) to (3), (5), (7) and (11) of the federal Act apply for the purpose of this Act. (2) Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided by this section where the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure. Repeated failures 58. (1) Subsections 163(1) and (2), except the portion of it after paragraph (a), and subsections 163(2.1), (3) and (4) of the federal Act apply for the purpose of this Act. (2) Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for by this section where the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission. Late or deficient instalments 59. Section 163.1 of the federal Act applies for the purpose of this Act. Refunds 60. (1) Subsections 164(1), (1.1), (1.2), (1.3), (1.31), (1.5), (2), (2.2), (2.3), (3), (3.1), (3.2), (4), (4.1), (5), (5.1), (6) and (7) of the federal Act apply for the purpose of this Act. (2) Where a collection agreement is in effect and by reason of a decision referred to in subsection 164(4.1) of the federal Act a repayment of tax, interest or penalties under that Act for a taxation year is made to a taxpayer or a security accepted under that Act for that tax, interest or penalties is surrendered to the taxpayer, subsection 164(4.1) of the federal Act as it applies for the purpose of this Act, applies to an overpayment of tax, interest or penalties under this Act for the year that arises by reason of the decision. Objections 61. Sections 165, 166.1 and 166.2 of the federal Act apply for the purpose of this Act. Appeals 62. (1) Section 169 of the federal Act applies for the purpose of this Act. (2) An appeal from an assessment under this Act may be taken in respect of a question relating, (a) in the case of an individual, to the determination of (i) his or her residence for the purpose of this Act, (ii) his or her income earned in the taxation year in the province as defined in paragraph 5 (c), (iii) the amount of tax payable for a taxation year based on the tax payable under the federal Act for that year as defined in paragraph 5 (g), or (iv) the amount of his or her adjusted income for the purpose of section 34 of this Act as determined under the definition "adjusted income" in subsection 122.5(1) of the federal Act; and (b) in the case of a corporation, to the determination of (i) its taxable income earned in the year in the province as defined in subsection 40 (2), or (ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year, but an appeal from an assessment does not lie in respect of the computation of the tax payable under the federal Act as defined in paragraph 5 (g) or of the taxable income of a corporation. (3) An appeal to the court shall be instituted by serving upon the minister a notice of appeal in duplicate in prescribed form and by filing a copy of it with the registrar of the court. (4) A notice of appeal shall be served upon the minister by being sent by registered mail addressed to the deputy head. (5) The appellant shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that he or she intends to submit in support of the appeal. Reply to appeal 63. (1) The minister shall, within 60 days after the day the notice of appeal is received, or within a further time that the court may allow, either before or after the expiration of that time, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of the further allegations of fact and of the statutory provisions and reasons that he or she intends to rely on. (2) The court may, in its discretion, strike out a notice of appeal or a part of it for failure to comply with subsection 62 (5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out. (3) The court may, in its discretion, (a) strike out a part of a reply for failure to comply with this section or permit the amendment of a reply; and (b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be fixed by the order. (4) Where a notice of appeal is struck out for failure to comply with subsection 62 (5) and a new notice of appeal is not filed as permitted by the court, the court may, in its discretion, dispose of the appeal by dismissing it. (5) Where a reply is not filed as required by this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal without notice to the minister despite the lack of a reply or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true. Trial 64. (1) Upon the filing of the material referred to in sections 62 and 63 , the matter shall be considered to be an action in the court and, unless the court otherwise orders, ready for hearing. (2) A fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in the manner and upon the terms that the court directs. Appeals 65. Sections 166, 167, 171 and 179 of the federal Act apply for the purpose of this Act. Practice and procedure 66. Except as provided in regulations made by the Lieutenant-Governor in Council, the practice and procedure of the court including the right of appeal and the practice and procedure relating to appeals, apply to a matter considered to be an action under section 64 , and a judgment and order given or made in such an action may be enforced in the same manner and by the same process as a judgment or order given or made in an action commenced in that court. PART II.1 Interpretation 66.1 (1) In this Part
(a)
"authorized foreign bank" means an authorized foreign bank as defined in section 2 of the Bank Act
(
(b)
"Canadian banking business" means the business carried on by an authorized foreign bank through a permanent establishment in (c) "capital", in the case of a financial institution other than an authorized foreign bank, means its capital for a taxation year that is the amount, if any, by which the total at the end of the year of (i) the amount of its long-term debt, (ii) the amount of its capital stock, or in the case of an institution incorporated without share capital, the amount of its members' contributions, retained earnings, contributed surplus and other surpluses, and (iii) the amount of its reserves for the year except to the extent that the reserves were deducted in computing its income under Part I of the federal Act for the year, exceeds the total at the end of the year of the amount of its deferred tax debit balance and the amount of a deficit deducted in computing its shareholders' equity; (d) "financial institution" means
(i)
a corporation which is a bank to which the Bank Act
( (ii) a trust and loan corporation including (A) a corporation which carries on business, or holds itself out as a trust corporation, (B) a corporation which carries on business, or holds itself out as a loan corporation, or (C) a corporation which carries on business, or holds itself out as a trust and loan corporation, and is a company which meets the requirements of section 3 of the Trust and Loan Corporations Act; (e) "guidelines" means the risk-weighting guidelines issued by the superintendent; (f) "long term debt" means a financial institution's subordinated indebtedness evidenced by obligations issued for a term of not less than 5 years; (g) "reserves" means reserves as defined in section 190 of the federal Act;
(h)
"subordinated indebtedness" means subordinated indebtedness as defined in the Bank Act
( (i) "superintendent" means the federal Superintendent of Financial Institutions; (j) "taxable capital" means the amount, if any, by which the capital of a corporation for the year exceeds the total determined under section 66.4 with respect to its investments for the year in the financial institutions related to it; and (k) "taxable capital employed in the province for the year" means an amount equal to taxable capital less the non-provincial amount taxable as prescribed by regulations made under section 66.6. (2) Notwithstanding paragraph (1)(c), in the case of an authorized foreign bank, "capital" means the total of (a) 10% of the total of all amounts, each of which is the risk-weighted amount at the end of the year of an on-balance sheet asset or an off-balance sheet exposure of the bank in respect of its Canadian banking business that the bank would be required to report under the guidelines if those guidelines applied and required a report at that time; and (b) the total of all amounts, each of which is an amount at the end of the year in respect of the bank's Canadian banking business that (i) if the bank were a bank listed in Schedule II to the Bank Act (Canada), would be required under the risk-based capital adequacy guidelines issued by the superintendent and applicable at that time to be deducted from the bank's capital in determining the amount of capital available to satisfy the superintendent's requirement that capital equal a particular proportion of risk-weighted assets and exposures, and (ii) is not an amount in respect of a loss protection facility required to be deducted from capital under the superintendent's guidelines respecting asset securitization applicable at that time. (3) Subsection 190(2) and sections 190.2 and 190.21 of the federal Act apply to this Part with those modifications that the circumstances may require. Capital tax payable 66.2 (1) Every corporation that is a financial institution with a permanent establishment in the province at any time during a taxation year shall pay a tax under this Part for the year equal to 4% of the amount, if any, by which its taxable capital employed in the province for the year exceeds its capital deduction for the year. (1.1) The amount of tax payable under this Part shall not be reduced by a tax credit provided under this Act. (2) Subject to section 66.3, where the capital of a corporation, or the total of the capital for a related group, is $10 million or less, the capital deduction is $5 million.
(3)
Where the capital of a corporation, or the total of the capital for a related group, is an amount other than the amount referred to in subsection (2), the deduction is nil. Related financial institution 66.3 (1) A corporation (a) that is a financial institution at any time during a taxation year; and (b) that was related to another financial institution at the end of the year may file with the minister an agreement for the allocation of capital deduction in the prescribed form on behalf of the related group of which the corporation is a member. (2) Where a corporation referred to in subsection (1) files an agreement for the allocation of the capital deduction, the amount that does not exceed the $5 million capital deduction shall be allocated among the members of the related group for the taxation year. Investment in related institutions 66.4 (1) A corporation's investment for a taxation year in a financial institution related to it is (a) in the case of a corporation that was resident in Canada at any time in the year, the total of all amounts each of which is the carrying value, or in the case of contributed surplus, the amount, at the end of the year of an eligible investment of the corporation in the financial institution; and (b) in the case of a corporation that is an authorized foreign bank, the total of all amounts each of which is the amount at the end of the year, before the application of risk-weights, that would be required to be reported under the guidelines if those guidelines applied and required a report at that time, of an eligible investment of the corporation in the financial institution that was used or held by the corporation in the year in the course of carrying on its Canadian banking business or, in the case of an eligible investment that is contributed surplus of the financial institution at the end of the year, the amount of the surplus contributed by the corporation in the course of carrying on that business. (2) For the purpose of subsection (1), an eligible investment of a corporation in a financial institution is a share of the capital stock or long-term debt of the financial institution or a surplus of the financial institution contributed by the corporation, other than an amount otherwise included as a share or debt, if the financial institution at the end of the year is (a) related to the corporation;
(b)
resident in (c) has a permanent establishment in the province at any time in the year. Allocation by minister 66.5 (1) The minister may request a corporation that is a financial institution at any time during a taxation year and that was related to another financial institution at the end of the year to file with the minister an agreement referred to in section 66.3 and, if the corporation does not file the agreement within 30 days after receiving the request, the minister may allocate an amount among the members of the related group of which the corporation is a member for the year not exceeding $5 million. (2) Subsections 190.15 (4), (5) and (6) of the federal Act apply to a corporation that is a financial institution. Non-provincial amount taxable 66.6 The Lieutenant-Governor in Council may make regulations respecting the method of computing the non-provincial amount taxable of a financial institution under this Part. Short taxation year 66.7 Where a taxation year of a corporation is less than 51 weeks, the tax payable determined under section 66.2 for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of 365. Application
66.8
This Part shall apply for every taxation year which begins after PART Administration 67. Sections 220, 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purpose of this Act. Regulations 68. (1) The Lieutenant-Governor in Council may make regulations (a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;
(b)
limiting the application of section
2
with respect to a provision of the federal Act that applies for the purpose of section
38
;
(c)
respecting the interpretation of a provision of the federal Act that applies for the purpose of section
38
; (c.1) respecting the calculation of harmonized sales tax credits for the purposes of section 34; (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;
(d)
prescribing an Act for the purpose of paragraph
38
(6)(b);
(e)
respecting the (f) providing in a case of doubt the circumstances in which, and extent to which, the federal regulations apply; (g) prescribing the eligibility requirements and the manner and method of calculating a film or video industry tax credit; (h) prescribing for the payment to a corporation of an amount by which a tax credit determined under subsection 45(2) exceeds the tax otherwise payable under this Act, and including conditions or restrictions in relation to a payment; (i) providing for tax credits, rebates and overpayments of tax for specific purposes and for the refund of those tax credits, rebates and overpayments; and (j) generally to give effect to the purpose of this Act. (2) For the purpose of this Act the federal regulations made in accordance with subsection 221(1) of the federal Act apply with the necessary changes with respect to all matters enumerated in that section, except where they are inconsistent with regulations made under subsection (1) or are expressed by regulations made under subsection (1) to be inapplicable. (3) Regulations made under this Act may be made with retroactive effect. (4) Regulations made under the federal Act which apply with the necessary changes have effect for the purpose of this Act upon publication in the Canada Gazette and when so published the regulations where they so provide have effect with reference to a period before they were published. 2000 cI-1.1 s68; 2001 c4 s2; 2005 c10 s17; 2007 c21 s6 Debts due to Crown 69. Section 222 of the federal Act applies for the purpose of this Act. Certificates 70. Subsection 223(1), except paragraphs (b), (c) and (d), and subsections 223(2) to (4) of the federal Act apply for the purpose of this Act with respect to an amount payable by a person under this Act that the Minister of National Revenue may not collect under a collection agreement. Minister's warrant 71. The minister may issue a warrant directed to the sheriff for the amount of the tax, interest and penalty owing by the taxpayer, together with interest from the date of the issue of the warrant and the costs and expenses of the sheriff and the warrant shall have the same effect as a judgment of the court and may be registered as a notice of judgment under the Judgment Enforcement Act . Acquisition of debtor's property 72. Section 224.2 of the federal Act applies for the purpose of this Act. Payment of money seized from tax debtor 73. Section 224.3 of the federal Act applies for the purpose of this Act. Direction to seize chattels 74. Section 225 of the federal Act applies for the purpose of this Act. Taxpayers leaving 75. Section 226 of the federal Act applies for the purpose of this Act. Money withheld 76. (1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10) and (10.2) to (13) of the federal Act apply for the purpose of this Act. (2) The minister may assess (a) a person for an amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purpose of this Act; and (b) a person for an amount payable by that person under subsection 224(4) or (4.1) or section 227.1 of the federal Act, as they apply for the purpose of this Act, and where the minister sends a notice of assessment to that person, sections 49 and 54 to 66 are applicable with the modification that the circumstances require. (3) Notwithstanding another provision of this Act or another Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the federal regulations made for the purpose of section 153(1), as both those regulations and that subsection apply for the purpose of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required on or before the day exceeds $500. Director's liability 77. Section 227.1 of the federal Act applies for the purpose of this Act. Books and records 78. (1) A person carrying on business in the province and a person who is required under this Act to pay or collect taxes or other amounts shall keep records and books of account, including an annual inventory kept in the prescribed manner, at his or her place of business or residence in Canada or at another place that may be designated by the minister in the form and containing the information that shall enable the taxes payable under this Act or the taxes or other amounts that should have been deducted, withheld or collected to be determined. (2) Subsections 230(2.1), (3), (4), (4.1), (4.2), (5), (6), (7) and (8) of the federal Act apply for the purpose of this Act. Inspections, privileges, etc. 79. Sections 231 to 231.5, 232, 233 and 236 of the federal Act apply for the purpose of this Act. Penalty for failure to comply with regulations 80. (1) A person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the federal Act as it applies by virtue of subsection 68 (2) of this Act is liable in respect of each failure to comply to a penalty of $10 a day for each day of default but not exceeding in all $2,500. (2) A person who fails to comply with regulations made under section 68 or incorporated by reference by virtue of subsection 68 (2) is liable to a penalty of $10 a day for each day of default but not exceeding in all $2,500. Offence and penalty 81. (1) A person who fails to file a return as required under this Act or a regulation, or under a provision of the federal Act or of the federal regulations, as the provision applies for the purpose of this Act, or who fails to comply with subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the federal Act, as it applies for the purpose of this Act, is guilty of an offence and, in addition to a penalty otherwise provided, is liable on summary conviction to (a) a fine of not less than $1,000 and not exceeding $25,000; or (b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months. (2) Subsection 238(2) of the federal Act applies for the purpose of this Act. (3) Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purpose of this Act, that person is not liable to a penalty under subsection 227(8), (8.5), (9) or (9.5) of the federal Act, as those subsections apply for the purpose of this Act, or under section 57 or 80 for the same failure unless that person was assessed for that penalty or that penalty was demanded from the person before the information or complaint giving rise to the conviction was laid or made. Offence 82. Subsections 239(1) and (1.1) of the federal Act apply for the purpose of this Act. Actions or suits 83. (1) Actions, suits or other legal proceedings brought or taken under this Act shall be brought or taken by and in the name of the Attorney General and, where a collection agreement is entered into, those actions, suits or other legal proceedings may be brought or taken by the Minister of National Revenue on behalf of the province in his or her own name or in the name of the Attorney General of the province. (2) Where a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against a person, the Minister of National Revenue may take or refrain from taking an action against that person contemplated by section 72 of this Act or subsection 239(1) or (1.1) of the federal Act as it applies for the purpose of this Act. Revealing confidential information 84. (1) A person who, while employed in the administration of this Act, (a) knowingly communicates or knowingly allows to be communicated to a person not legally entitled to information, information obtained by or on behalf of the minister for the purpose of this Act; (b) knowingly allows a person not legally entitled to do so, to inspect or to have access to a book, record, writing, return or other document obtained by or on behalf of the minister for the purpose of this Act; or (c) knowingly uses, other than in the course of his or her duties in connection with the administration or enforcement of this Act, information obtained by or on behalf of the minister for the purpose of this Act, is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both a fine and imprisonment. (2) Subsection (1) does not apply to the communication of information between (a) the Minister of National Revenue and the Minister of Finance; or (b) the Minister of Finance for this province or the Minister of National Revenue, acting on behalf of the province, and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of (i) an agreeing province, or (ii) a non-agreeing province to which an adjusting payment may be made under subsection 93 (2). Requirement to provide specified information
84.1
(1) The minister may, with the approval of the Lieutenant-Governor in Council, require that a department or agency of the government which keeps personal information about a person provide a copy of that personal information as limited in subsection (3) to the minister. (2) Information obtained under subsection (1) may be obtained and used only for the purpose of this Act and, subject to the provisions of the federal Act, for any related purpose of that Act. (3) In this section, "personal information" is limited to (a) a persons name and any identifying number, classification, or symbol; (b) a persons residential street address and postal code, including the date of a persons last change of province of residence; (c) a persons date of birth or death; (d) the date of a persons registration or deregistration with a government department or agency; (e) a date that a person used the services of a government department or agency; and (f) information referred to in paragraphs (a) to (e) about a spouse, common-law partner or dependant of the person. (4) Notwithstanding subsection (3), "personal information" shall not include information about the health, disability or medical condition or treatment of a person. Offence by corporation 85. Section 242 of the federal Act applies for the purpose of this Act. No power to decrease punishment 86. Section 243 of the federal Act applies for the purpose of this Act. Information or complaint 87. Subsections 244(1) to (5), (7) to (11), (13) to (17) and (20) to (22) of the federal Act apply for the purpose of this Act. General anti-avoidance rule 88. Sections 245 and 246 of the federal Act apply for the purpose of this Act. Provincial anti-avoidance rule 88.1 (1) In this section (a) "avoidance transaction" means a transaction that, if not for this section, would result directly or indirectly in a tax benefit or is a part of a series of transactions which series would result directly or indirectly in a tax benefit but does not include a transaction that may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to (i) obtain a tax benefit, or (ii) reduce, avoid or defer a tax or another amount payable in respect of tax under any other Act of Canada or of any province or territory of Canada, or (iii) increase a refund of tax or of another amount payable in respect of tax under any other Act of Canada or of any province or territory of Canada, and is not a transaction that would result, directly or indirectly, in a misuse or abuse of the provisions of this Act, other than this section; (b) "tax benefit" means a reduction, avoidance or deferral of tax or of another amount payable under this Act or an increase in a refund of tax or of another amount under this Act; (c) "tax consequence" to a person means (i) the amount of the person's (A) income for the year, (B) loss, (C) taxable income,
(D)
taxable income earned in (E) income earned in the taxation year in the province, (F) income earned in the taxation year outside the province, and (G) taxable income earned in the year in the province, or (ii) any amount, other than an amount referred to in clauses (A) to (G), that is payable or refundable to the person under this Act or that is relevant for the purpose of determining any other amount referred to in this section; and (d) "transaction" includes an arrangement or event. (2) If a transaction is an avoidance transaction, the tax consequence to a person shall be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that but for this section would result directly or indirectly from that transaction or from a series of transactions that includes that transaction. (3) In determining the tax consequence to a person in a manner that is reasonable in the circumstances in order to deny a tax benefit that would result directly or indirectly from an avoidance transaction (a) an amount deducted in computing an amount referred to in the definition of "tax consequence" may be allowed or disallowed in whole or in part; (b) any deduction referred to in paragraph (a) or any other amount used to determine an amount payable or refundable under this Act may be allocated to another person; (c) the nature of any payment or other amount may be recharacterized; and (d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored. (4) If a notice of assessment, reassessment or additional assessment reflecting the application of subsection (2) to a transaction has been sent to a person, or a notice of determination has been sent to the person, another person is entitled, within 180 days after the date of mailing of that notice, to request in writing that the minister make an assessment, reassessment or additional assessment applying subsection (2) or otherwise make a determination respecting returns of income, assessments of tax, withholdings of tax or reassessments of tax. (5) Upon receipt of a request under subsection (4), the minister shall consider the request and make an assessment, reassessment, additional assessment or determination notwithstanding an expiry of a time limit except that an assessment, reassessment, additional assessment or determination may be made under this subsection only to the extent that it may be reasonably regarded as relating to a transaction referred to in subsection (4). (6) The tax consequence to any person after the application of this section shall only be determined through a notice of assessment, reassessment, additional assessment or determination under section 49 or 50. Collection agreement 89. (1) Subject to the approval of the Lieutenant-Governor in Council, the minister may on behalf of the government of the province enter into a collection agreement with the Government of Canada under which the Government of Canada shall collect the tax payable under this Act on behalf of the province and shall make payments to the province in respect of the money collected in accordance with the terms and conditions that the collection agreement prescribes. (2) Subject to the approval of the Lieutenant-Governor in Council, the minister may on behalf of the government of the province enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1). (3) Where a collection agreement is in effect, the Minister of National Revenue may, on behalf of the Minister of Finance, employ the powers and perform the duties that the Minister of Finance or the deputy head or assistant deputy head has under this Act, other than this Part, including the discretion to refuse to permit the production in judicial or other proceedings of a document that is not, in the opinion of the Minister of National Revenue, in the interests of public policy to produce.
(4)
Where a collection agreement is entered into, the Commissioner of Customs and Revenue appointed under the Canada Customs and Revenue Act
( (a) employ the powers, perform the duties and exercise the discretion that the Minister of National Revenue has under this Act; and (b) designate officers of his or her department to carry out those functions, duties and powers that are similar to those that are exercised by them on his or her behalf under the federal Act. (5) The minister may negotiate and accept a settlement to relieve the effect of multiple taxation and, for the purposes of this section, multiple taxation occurs where (a) a person who is subject to income tax under section 6 (i) is also subject to income tax in another province or territory, and (ii) as a result of a conflict of law or a disagreement between the province and another province or territory respecting an interpretation of law or fact, the aggregate of the person's income earned in the year in each province or territory as determined by the law of each province or territory exceeds the person's income earned in the year in a province; or (b) a corporation that is subject to tax under section 40 (i) is also subject to tax in another province or territory, and (ii) as a result of a conflict of law or a disagreement between the province and another province or territory respecting an interpretation of law or fact, the aggregate of the corporation's taxable income earned in the year in each province or territory as determined by the law of each province or territory exceeds the corporation's taxable income earned in the year in a province. (6) The minister of the province may authorize a person employed in the Department of Finance or the Minister of National Revenue to perform and exercise the power conferred under subsection (5) and may set terms, conditions and limitations in the exercise of that power. 2000 cI-1.1 s89; 2005 c10 s19; 2007 c12 s8 Application of payment 90. (1) A collection agreement may provide that where a payment is received by the minister on account of the tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under 2 or more of those statutes, the payment received may be applied by the Minister of National Revenue towards the tax payable by the taxpayer under such an Act or a statute in the manner that may be specified in the agreement, notwithstanding that the taxpayer has directed that the payment be applied in another manner or has made no direction as to its application. (2) A payment or part of a payment applied by the Minister of National Revenue in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act (a) relieves the taxpayer of liability to pay that tax to the extent of the payment or part of it so applied; and (b) shall be considered to have been applied in accordance with a direction made by the taxpayer. No action against persons withholding tax 91. Where a collection agreement is in effect and an amount is remitted to the minister under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province, (a) no action lies for recovery of that amount by that individual; and (b) the amount may not be applied in discharge of a liability of that individual under this Act. Deduction at source 92. (1) Where a collection agreement is entered into, an individual resident in the province on the last day of the taxation year is not required to remit an amount on account of tax payable by him or her under this Act for the taxation year to the extent of the amount deducted or withheld on account of his or her tax for that year under the income tax statute of another agreeing province. (2) Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in this province on the last day of the taxation year to whom subsection (1) applies exceeds tax payable by him or her under this Act for that year, the provisions of the federal Act that apply for the purpose of this Act because of section 60 , apply in respect of that individual as though the excess were an overpayment under this Act. Non-agreeing provinces 93. (1) In this section (a) "adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of this province to a non-agreeing province; and (b) "amount deducted or withheld" does not include a refund made in respect of that amount. (2) Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to the province that, in the opinion of the minister, corresponds to an adjusting payment, the Lieutenant-Governor in Council may authorize the minister to make an adjusting payment to that non-agreeing province and enter into an agreement that may be necessary to carry out the purpose of this section. (3) Where a collection agreement is in effect, an adjusting payment that may be made under subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of the government of the province as communicated by the minister for the province to the Minister of National Revenue. (4) The adjusting payment to be made under this section shall be the amount that is equal to the total of the amounts deducted or withheld under subsection 153(1) of the federal Act in respect of the tax payable for a taxation year by individuals who (a) file returns under the federal Act; (b) are taxable under the federal Act in respect of that year; and (c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made. (5) Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, on account of the tax for a taxation year of an individual who is taxable under the federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province, (a) an action does not lie for the recovery of that amount by that individual; and (b) the amount may not be applied in discharge of a liability of that individual under this Act. (6) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in the province on the last day of the year is not required to remit an amount on account of income tax payable or that might have been payable by him or her under this Act for the year to the extent of the amount deducted or withheld on account of that individual's income tax for that year under the law of that non-agreeing province. (7) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in the province on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by him or her under this Act for that year, the provisions of the federal Act that apply because of section 60 apply in respect of that individual as though the excess were an overpayment under this Act. (8) Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the province and to make an adjusting payment on behalf of the province, the adjusting payment (a) shall be made out of money that has been collected on account of tax under this Act for a taxation year; and (b) shall be the amount calculated by the Minister of National Revenue to be the amount required to be paid under subsection (4), and the payment discharges an obligation the Government of Canada may have with respect to the payment to the province of an amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, to which subsection (5) applies. Reciprocal enforcement of judgments 94. (1) A judgment of a superior court of an agreeing province under that province's income tax statute, including a certificate registered in that superior court in a manner similar to that provided in subsection 70 (2), may be enforced in the manner provided in the Reciprocal Enforcement of Judgments Act . (2) For the purpose of subsection (1), where a judgment of a superior court of an agreeing province is sought to be registered under the Reciprocal Enforcement of Judgments Act , the judgment shall be registered, notwithstanding that it is established that one or more of the provisions of subsection 3 (6) of that Act apply. (3) For the purpose of subsection (1), the Lieutenant-Governor in Council may make regulations to enable the enforcement of judgments in respect of taxes in agreeing provinces to be enforced in the province. RSN1990 cI-1 Rep. 95. The Income Tax Act is repealed. Schedule Student Loan Tax Credit Factor Table
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