Fairness for Families Act, 2008 Hudak, Tim — Bill 88 (39th Parliament, 1st Session)

Bill 88, 39-1

Ontario — Bills

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Bill 88, Fairness for Families Act, 2008

Hudak, Tim

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[39] Bill 88 Original (PDF)

Bill 88 2008

An Act to provide

fairness for families by amending the Taxation Act, 2007 to allow income

splitting for taxation between cohabiting spouses and common-law partners

Note:

This Act amends the Taxation

Act, 2007 . For the legislative history of the Act, see the Table

of Consolidated Public Statutes – Detailed Legislative History on

www.e-Laws.gov.on.ca.

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

1. Subsection 1 (1) of the Taxation Act, 2007

is amended by adding the following

definitions:

"cohabiting

spouse or common-law partner" has the same meaning as in

section 122.6 of the

Federal Act; ("conjoint ou conjoint de fait visé")

"individual taxpayer ratio" means, in respect of an individual who has

filed a joint election described in

section 4.1 for any part of a taxation

year, the ratio of the part of the year during which the individual was not a

cohabiting spouse or common-law partner to the whole of the year; ("coefficient

de déclaration individuelle")

"joint taxpayer ratio" means, in respect of an individual who has filed

a joint election described in

section 4.1 for any part of a taxation year, the

ratio of the part of the year for which the individual and the individual's

spouse or common-law partner filed the election to the whole of the year;

("coefficient de déclaration conjointe")

2. Subsection 4 (3) of the Act is repealed

and the following substituted:

Tax payable

(3) The tax payable under this Part for a taxation year by

an individual who has not filed a joint election described in

section 4.1 for

any part of the year is the sum of,

(

a) the

individual's tax payable under Division B for the year; and

(

b) the

individual's tax payable under Division C for the year.

Same, joint return

(4) The tax payable under this Part for a taxation year by

an individual who has filed a joint election described in

section 4.1 for any

part of the year is the sum of,

(

a) the

individual's tax payable under Divisions B and C for the year multiplied by the

individual taxpayer ratio; and

(

b) the

tax payable under Divisions B and C for the year on a joint return described in

section 4.1 multiplied by the joint taxpayer ratio.

3. Division A of

Part II of the Act is

amended by adding the following section:

Election for joint return

4.1

(1) An

individual and the individual's spouse or common-law partner who are both resident

in Canada for the whole of a taxation year may jointly elect to file a joint

return under

section 111 for the part of the year during which they were cohabiting

spouses or common-law partners of each other, instead of each being required to

file an individual return under that section.

Joint election

(2) To make the election described in subsection (1), the

individual and the individual's spouse or common-law partner shall file a joint

election in the form prescribed by the Minister of Finance in the joint return,

providing details about the number of days during the year during which the

individual and the individual's spouse or common-law partner were cohabiting

spouses or common-law partners of each other.

False declaration

(3) A joint election filed under subsection (2) is invalid

if the Minister establishes that any individual has knowingly or under circumstances

amounting to gross negligence made a false declaration in the election.

Tax payable

(4) The tax payable under Divisions B and C for the year

on a joint return described in subsection (1) shall be the tax payable under

those Divisions by reading,

(

a) references

to an individual as references to both the individual and the individual's

spouse or common-law partner;

(

b) references

to the individual's tax base and taxable income for the taxation year as references

to one-half of the aggregate of the taxable income of the individual and the

individual's spouse or common-law partner for the year; and

(

c) references

to the individual's income for the taxation year as references to one-half of

the aggregate of the income of the individual and the individual's spouse or

common-law partner for the year.

4. Subsection 9 (3) of the Act is amended by

striking out the portion before the formula and substituting the following:

Tax credit for spouse or common-law partner

(3) If an individual is entitled to a deduction under

paragraph 118 (1) (

a) of the Federal Act for a taxation year and if the

individual and the individual's spouse or common-law partner have not filed a

joint election described in

section 4.1 for the year, the individual is entitled

to a tax credit for the year for a spouse or common-law partner calculated

using the formula,

. . . .

Commencement

5. This Act comes into force on the day it

receives Royal Assent.

Short title

6. The

short title of this Act is the Fairness for Families Act, 2008 .

EXPLANATORY NOTE

The

Bill amends the Taxation

Act, 2007 to allow individuals who are married or who have a

common-law partner in a taxation year that ends on or after December 31, 2009

to file a joint income tax return with their spouse or common-law partner for

the part of the year during which they cohabit with their spouse or common-law

partner. To file a joint income tax return in that way, both individuals are

required to file a joint election to that effect in the joint income tax

return.

Date Bill stage Activity Committee

June 12, 2008

Second Reading

Lost on division

June 12, 2008

Second Reading

Debate

June 5, 2008

First Reading

Carried

Debates and Progress

First Reading

June 5, 2008

Second Reading

June 12, 2008

Mr. Tim Hudak, Mr. Wayne Arthurs, Ms. Lisa MacLeod, Mr. Michael Prue, Mr. Khalil Ramal, Ms. Sylvia Jones, Mr. Peter Kormos

June 12, 2008

Lost on division.

Committee

Third Reading

Royal Assent :

Coming into force :

Royal Assent.

Acts affected - Bill 88

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Taxation Act, 2007

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 88, 39-1
Type	bill
Volume / chapter	p39 s1 bill 88 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	316e32704802dff68b50939db7fb856a920af0d5

Source file is stored in the law ingest library (html).