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First
Session, 51st General Assembly 3 Charles III, 2026 |
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AN ACT TO AMEND THE
INCOME TAX ACT, 2000 |
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Received and Read the First Time................................................................ |
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Second
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Committee..................................................................................................... |
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Third
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Royal Assent................................................................................................. |
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HONOURABLE CRAIG
PARDY |
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Ordered to be printed by
the Honourable House of Assembly |
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EXPLANATORY NOTES This Bill would amend the Income Tax Act, 2000 to ˇ increase the basic personal amount; ˇ increase the volunteer firefighters' tax credit; ˇ increase the search and rescue volunteer tax credit; and ˇ decrease the small business corporate income tax rate. A BILL AN ACT TO AMEND THE INCOME TAX ACT, 2000 Analysis 1.
S.9 Amdt. 2.
S.17.3 Amdt. 3.
S.17.4 Amdt. 4.
S.40 Amdt. 5. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: SNL2000 cI-1.1 1. (1) Subparagraph 9(1)(a)(i) of the Income Tax Act, 2000 is amended by deleting the amount "$7,410" and substituting the amount "$13,094". (2) Subparagraph 9(1)(b)(iii) of the Act is amended by deleting the amount "$7,410" and substituting the amount "$13,094". (3) Paragraph 9(1)(c) of the Act is amended by deleting the amount "$7,410" and substituting the amount "$13,094". (4) Subsection 9(5) of the Act is repealed and the following substituted: (5) Notwithstanding section 6.1, the amount of $13,094 referred to in subparagraphs 9(1)(a)(i) and 9(1)(b)(iii) and paragraph 9(1)(c) shall not be adjusted as prescribed in that section before the 2027 taxation year. (5) Section 9 of the Act is amended by adding immediately after subsection (5) the following: (6) Notwithstanding subsection 6.1(2), for the purpose of calculating the tax payable by an individual for the 2027 taxation year an amount expressed in dollars in subparagraphs 9(1)(a)(i) and 9(1)(b)(iii) and paragraph 9(1)(c) shall be adjusted so that the amount referred to in subparagraphs 9(1)(a)(i) and 9(1)(b)(iii) and paragraph 9(1)(c) is the total of (a) $15,000; 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. 2. Section 17.3 of the Act is amended by deleting the amount "$3,000" and substituting the amount "$6,000". 3. Section 17.4 of the Act is amended by deleting the amount "$3,000" and substituting the amount "$6,000". 4. (1) Paragraph 40(3)(a) of the Act is amended by deleting the percentage "2.5%" and substituting the percentage "2%". (2) Paragraph 40(3)(a) of the Act is amended by deleting the percentage "2%" and substituting the percentage "1.5%". (3) Paragraph 40(3)(a) of the Act is amended by deleting the percentage "1.5%" and substituting the percentage "1%". (4) Subsection 40(4) of the Act is repealed and the following substituted: (4) Notwithstanding subsection (3), if a corporation's taxation year includes January 1, 2026, and 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) that proportion of 2.5% that the number of days in the taxation year that are before January 1, 2026 is of the number of days in the taxation year 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) that proportion of 2% that the number of days in the taxation year that are after December 31, 2025 is of the number of days in the taxation year 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. (5) Subsection 40(4) of the Act is repealed and the following substituted: (4) Notwithstanding subsection (3), if a corporation's taxation year includes January 1, 2027, and 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) that proportion of 2% that the number of days in the taxation year that are before January 1, 2027 is of the number of days in the taxation year 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) that proportion of 1.5% that the number of days in the taxation year that are after December 31, 2026 is of the number of days in the taxation year 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. (6) Subsection 40(4) of the Act is repealed and the following substituted: (4) Notwithstanding subsection (3), if a corporation's taxation year includes January 1, 2028, and 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) that proportion of 1.5% that the number of days in the taxation year that are before January 1, 2028 is of the number of days in the taxation year 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) that proportion of 1% that the number of days in the taxation year that are after December 31, 2027 is of the number of days in the taxation year 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.
Commencement 5. (1) This Act, except for subsections 1(5), 4(2), 4(3), 4(5) and 4(6), is considered to have come into force on January 1, 2026. (2) Subsections 1(5), 4(2) and 4(5) come into force on January 1, 2027. (3) Subsections 4(3) and 4(6) come into force on January 1, 2028. ŠKing's Printer |