Taxation Amendment Act (Public Transit Expense Tax Credit), 2011 O'Toole, John — Bill 25 (40th Parliament, 1st Session)

Bill 25, 40-1

Ontario — Bills

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Bill 25, Taxation Amendment Act (Public Transit Expense Tax Credit), 2011

O'Toole, John

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Acts affected

Original

[40] Bill 25 Original (PDF)

Bill 25 2011

Act to amend the Taxation Act, 2007 to provide for a tax credit for expenses

incurred in using public transit

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

Preamble

Public

transit is an important public good for Ontario which must be promoted.

encouraging people to use public transit, many benefits result. For instance,

harmful greenhouse gas emissions are reduced and traffic congestion and

gridlock are eased because fewer motorists will be on our province's roads.

order to encourage people to use public transit, it is important to give them

incentives. One way to achieve this is to permit taxpayers to obtain a

non-refundable income tax credit for expenses incurred for using public

transit. The federal government implemented a federal income tax credit for

public transit expenses incurred after June 30, 2006. It is appropriate for Ontario to offer a similar income tax credit at the provincial level.

Therefore,

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

the Province of Ontario, enacts as follows:

Section

9 of the Taxation Act, 2007 is amended by adding

the following subsection:

Public

transit expense tax credit

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

section 118.02 of the Federal Act for a taxation year ending after December 31,

2009, the individual is entitled to a tax credit for the year equal to the

amount that would be determined in respect of the individual for the year under

that

section of the Federal Act if the references in that

section to the

appropriate percentage were read as references to the lowest tax rate.

Part

IV of the Act is amended by adding the following

section before the heading " Division

C - Corporations ":

Public

transit expense tax credit for payer

89.1

(1) Subject

to subsection (2), a taxpayer who pays amount B as described in subsection

118.02 (2) of the Federal Act on behalf of an individual who would be entitled

to the tax credit described in subsection 9 (23) for a taxation year ending

after December 31, 2009 if the individual paid that amount is entitled to a tax

credit for the year not exceeding the amount of the tax credit to which the

individual would have been entitled under that subsection 9 (23) for the

taxation year.

Exception,

employer

(2) A person who employs or retains the services of an

individual and who pays amount B as described in subsection 118.02 (2) of the

Federal Act on behalf of the individual for a taxation year ending after

December 31, 2009 as part of the individual's remuneration is not entitled to a

tax credit under subsection (1).

Receipts

required

(3) No person may claim a tax credit under subsection

(1) based on public

transit expenses of an individual u nless the person, when making the claim, files with

the Ontario Minister receipts for the expenses that are issued by the provider

of the transportation service to which the expenses relate and that comply with

subsection (4).

Form

of receipts

(4) The receipts shall indicate,

(

a) the

name of the person who paid the individual's public transit expenses;

(

b) the

name of the individual whose public transit expenses were paid;

(

c) the

name of the provider of the transportation service;

(

d) the

amount paid for each pass for public transit to which the public transit

expenses relate; and

(

e) the

duration of each pass described in clause (d).

Duty

to provide receipts

(5) Upon receiving payment of public transit expenses of

an individual on which a tax credit under subsection (1) is based, a provider

of a transportation service to which the expenses relate shall, at the request

of the person who pays the expenses and at no cost to the person, issue a

receipt that complies with subsection (4) to the person.

Commencement

3. This

Act comes into force on the day it receives Royal Assent.

Short

title

4. The

short title of this Act is the Taxation Amendment Act

(Public Transit Expense Tax Credit), 2011 .

EXPLANATORY

NOTE

The

Bill amends the Taxation Act, 2007 to permit

taxpayers to obtain a non-refundable income tax credit for expenses that they

incur and pay for using public transit after December 31, 2009. The tax credit

is a share of the tax credit offered by the Income Tax Act

(Canada). If another person pays the expenses on behalf of the taxpayer, that

other person is entitled to the tax credit, except if the person makes the

payment as part of the taxpayer's remuneration.

Date Bill stage Activity Committee

December 6, 2011

First Reading

Carried

Debates and Progress

First Reading

December 6, 2011

Committee

Second Reading

Committee

Third Reading

Royal Assent

Acts affected - Bill 25

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 25, 40-1
Type	bill
Volume / chapter	p40 s1 bill 25 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	751a81ad24a8a3ff499fb1161f48b48d5e766b5a

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