Fourth

Session, 47th General Assembly

Elizabeth II, 2015

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

ROSS WISEMAN

Minister of Finance and

President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Income Tax Act, 2000 to implement

changes announced in Budget 2015.

The Bill would

create 2 new tax brackets for

tax payable by an individual; and

increase the capital tax rate.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.7 R&S

Amount of tax payable

2. S.66.2 Amdt.

Capital tax payable

3. Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

Section 7 of the Income Tax Act, 2000 is repealed and the following substituted:

Amount of tax

payable

(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 2015 and subsequent

taxation years, is

(a) 7.7% of the taxable income if the taxable

income does not exceed $35,008;

(b) $2,696 plus 12.5% of the amount by which the

taxable income exceeds $35,008 and does not exceed $70,015;

(c) $7,071 plus 13.3% of the amount by which the

taxable income exceeds $70,015 and does not exceed $125,000;

(d) $14,384 plus 14.3% of the amount by which the

taxable income exceeds $125,000 and does not exceed $175,000; and

(e) $21,534 plus 15.3% of the amount by which the

taxable income exceeds $175,000.

(2) Notwithstanding

section 6.1, the amounts

expressed in subsection (1) shall not be adjusted as prescribed in that

section

before the 2016 taxation year.

(1) Subsection 66.2(1) of the Act is

repealed and the following substituted:

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 5% of the amount, if any, by which its taxable capital

employed in the province for the year exceeds its capital deduction for the

year.

(2) Section 66.2 of the Act is amended by adding

immediately after subsection (3) the following:

(4) Notwithstanding subsection (1), a

corporation's capital taxation rate for a taxation year is the total of

(

a) that proportion of 4% that the number of days

in the taxation year that are before April 1, 2015 is of the number of days in

the taxation year; and

(

b) that proportion of 5% that the number of days

in the taxation year that are after March 31, 2015 is of the number of days in

the taxation year.

Commencement

(1) Section 1 of this Act comes into force

on July 1, 2015.

(2) Section 2 of this Act is considered to have

come into force on April 1, 2015.

Queen's Printer