2002 BILL 6

	6


Fourth Session, 44th General Assembly 51 Elizabeth II, 2002
BILL 6
AN ACT TO AMEND THE INCOME TAX ACT, 2000
Received and Read the First Time
Second Reading
Committee
Third Reading
Royal Assent
HONOURABLE JOAN MARIE AYLWARD Minister of Finance and President of Treasury Board
Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

The purpose of this amendment is to reduce the rate of the dividend tax credit under the Income Tax Act, 2000 from 9% to 5%. This change would have effect from March 22, 2002.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000
Analysis

1. S.20 Amdt.
Deduction for taxable dividends

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

1. (1) Section 20 of the Income Tax Act, 2000 is amended by renumbering it as subsection 20(1) and by deleting the word "Section" and substituting the words and commas "Before March 22, 2002, section".

(2) Section 20 of the Act is amended by adding immediately after the proposed subsection 20(1) the following:

(2) After March 21, 2002, section 121 of the federal Act applies for the purpose of this Act, except that the reference to "2/3" (or to the fraction that it is amended to read) in that section of the federal Act shall be read as a reference to 25% for the purpose of this Act.