Estate Administration Tax Fairness Act, 2015 McNaughton, Monte — Bill 120 (41st Parliament, 1st Session)

Bill 120, 41-1

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Bill 120, Estate Administration Tax Fairness Act, 2015

McNaughton, Monte

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[41] Bill 120 Original (PDF)

Bill 120 2015

Act to amend the Estate Administration Tax Act, 1998

Her

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

Province of Ontario, enacts as follows:

1. (1) Subsection

1 (1) of the Estate Administration Tax Act, 1998 is

amended by adding the following

definitions:

"2015

transition day" means the day the Estate Administration

Tax Fairness Act, 2015 , receives Royal Assent; ("jour de transition en

2015")

"encumbrance" means a claim that secures the payment of

money or the performance of any other obligation and includes a charge under

the Land Titles Act , a

mortgage and a lien; ("charge")

(2) The definition of "value of the estate"

in subsection 1 (1) of the Act is amended by striking out "less the actual

value of any encumbrance on real property that is included in the property of

the deceased person" and substituting "less the actual value of any encumbrance

on any such property and any amounts bequeathed or devised by the deceased person

for a charitable purpose".

(3) Section 1 of the Act is amended by adding

the following subsection:

Bequest

to charity

(1.1) For the purpose of the definition of

"value of the estate" where a bequest or devise is in the nature of a percentage

of the residuary estate, the value of the estate shall be reduced by that percentage.

2. (1) Subsection

2 (6) of the Act is revoked and the following substituted:

Amount,

certificate sought after June 7, 1992 and before 2015 transition day

(6) The amount of tax payable

upon the issuance of an estate certificate for which application is made after

June 7, 1992 but before the 2015 transition day is,

(a) $5

for each $1,000 or part thereof of the first $50,000 of the value of the

estate; and

(b) $15

for each $1,000 or part thereof by which the value of the estate exceeds

$50,000.

Amount,

certificate sought on or after the 2015 transition day

(6.1) Subject to subsection (6.2), the amount

of tax payable upon the issuance of an estate certificate for which application

is made on or after the 2015 transition day is determined as follows:

1. If

the value of the estate is $50,000 or less, the amount of tax payable is nil.

2. If

the value of the estate is greater than $50,000, the amount of tax payable is the

sum of,

i. $5

for each $1,000 or part thereof by which the value of the estate exceeds $50,000

but is equal to or less than $100,000; and

ii. $20

for each $1,000 or part thereof by which the value of the estate exceeds $100,000.

Maximum

tax

(6.2) The total amount of tax payable in

respect of an estate certificate for which application is made on or after the

2015 transition day shall not exceed $3,250.

(2) Subsection 2 (7) of the Act is amended

by adding "subject to subsection (6.2)" at the end.

3. Subsection

4.1 (1) of the Act is amended by striking out "or on or after such later date

as may be prescribed by the Minister of Finance" at the end and substituting "and

before the 2015 transition day".

4. (1) Subsection

6 (1) of the Act is amended by adding the following clause:

(c.1) respecting

any transitional issues that may arise relating to the amendments made by the Estate Administration Tax Fairness Act, 2015 ;

(2) Section 6 of the Act is amended by

adding the following subsection:

Conflict

(4) In the event of a conflict between a

regulation made under clause (1) (c.1) and a provision of this Act or of

another Act or a regulation made under another Act, the regulation made under

this Act prevails.

Repeals

5. The

following provisions of the Act are repealed:

1. Subsection 1 (2).

Section 4.1.

3. Sections 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8 and

4.9.

4. Subsection 5 (1.1).

Section 5.1.

Section 6.1.

Commencement

(1) Subject

to subsection (2), this Act comes into force on the day it receives Royal

Assent.

Same

(2) Section 5 comes into force on a day to

be named by proclamation of the Lieutenant Governor.

Short

title

7. The

short title of this Act is the Estate Administration Tax

Fairness Act, 2015 .

EXPLANATORY

NOTE

Currently,

the Estate Administration Tax Act, 1998 provides

that the value of the estate of a deceased person does not include the value of

any encumbrance on real property owned by the deceased person. The Bill amends

the Act so that the value of any encumbrance on any property is excluded from

the value of the estate. In addition, the value of a bequest or devise made for

a charitable purpose is not included in the value of the estate.

The

Act also changes the amount of estate administration tax payable starting on

the day the Bill receives Royal Assent. For an estate worth $50,000 or less,

the amount of tax payable is nil. The amount of tax for an estate worth more

than $50,000 is $5 for every $1,000 by which the value of the estate is greater

than $50,000 but less than $100,000, and $20 for every $1,000 by which the

value of the estate is greater than $100,000. The maximum amount of tax payable

under the new provisions is $3,250, with the result that no estate bears a

greater estate administration tax liability under the new rate structure than

it does under the current rate structure.

The

Bill also repeals amendments made to the Act by the Better

Tomorrow for Ontario Act (Budget Measures), 2011 . Major features of that

Act are provisions requiring information about estates to be given to the

Minister of Finance and provisions relating to the assessment of estates in

respect of their estate administration tax payable under the Act.

Date Bill stage Activity Committee

September 24, 2015

Second Reading

Lost on division

September 24, 2015

Second Reading

Debate

September 16, 2015

First Reading

Carried

Debates and Progress

First Reading

September 16, 2015

Committee

Second Reading

September 24, 2015

Mr. Monte McNaughton, Ms. Catherine Fife, Mr. Yvan Baker, Mr. Tim Hudak, Mr. Peter Z. Milczyn, Mr. Victor Fedeli

September 24, 2015

September 24, 2015

Lost on recorded division.

Committee

Third Reading

Royal Assent

Acts affected - Bill 120

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

Estate Administration Tax Act, 1998

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 120, 41-1
Type	bill
Volume / chapter	p41 s1 bill 120 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	542851a7d53de6f928daba11d7bec74bce60ceaa

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