First

Session, 49th General Assembly

Elizabeth II, 2019

BILL 14

AN ACT TO AMEND THE

INCOME TAX ACT, 2000

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE TOM

OSBORNE

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

ensure that split income is

included in the net income amount used to compute the age amount tax credit;

extend pension tax credit

eligibility to retirement income security benefits or income replacement

benefits paid under

Part 2 of the Veterans

Well-being Act (Canada);

restrict the child care tax credit,

volunteer firefighters' tax credit and search and rescue tax credit to

individuals who were resident in the province at the end of the taxation year;

and

amend the foreign tax credit rate

to be consistent with the change in the general income tax rate for corporations.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.9 Amdt.

Personal credits

Ss. 17.2 to 17.4 R&S

17.2

Child care tax credit

17.3 Volunteer

firefighters' tax credit

17.4 Search and rescue volunteer tax credit

S.44 Amdt.

Foreign

tax credits

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

1. (1) Subsection 9(2) of the Income Tax Act, 2000 is repealed and the following substituted:

(2) For

the purpose of computing the tax payable under this Part for the 2020 and

subsequent taxation years by an individual who, before the end of the year, has

attained the age of 65 years, there may be deducted the amount determined by

the formula

A x ($6,063 -

where

A is the appropriate percentage for the year; and

B is 15% of the amount, if any, by which the individual's income for

the year would exceed $33,226 if, in computing that income, no amount were

included in respect of a gain from a disposition of property to which

section

79 of the federal Act applies and no amount were deductible under paragraph

20(1)(ww) of the federal Act.

(2) Subsection 9(3) of the Act is repealed and the

following substituted:

(3) For the purpose of computing the tax payable

under this Part for a taxation year by an individual who was resident in the

province on the last day of the taxation year, there may be deducted an amount

determined by the formula

A x B

where

A is the appropriate percentage for the year;

and

B is the lesser of

(a) $1,000; and

(

b) the amount determined under paragraph (

b) of

the description of B in subsection 118(3) of the federal Act and used in

computing the individual's deduction under that

section for the taxation year.

2. Sections 17.2, 17.3 and 17.4 of the Income Tax Act, 2000 are repealed and

the following substituted:

Child care tax credit

17.2 For the purpose of computing the tax payable

under this Part for a taxation year by an individual who was resident in the

province on the last day of the taxation year, there may be deducted an amount

determined by the formula:

A x B

where

A is the appropriate percentage for the year;

and

B is an amount that is deducted in computing the

taxpayer's income for the year under

section 63 of the federal Act.

Volunteer

firefighters' tax credit

17.3 For

the purpose of computing the tax payable under this Part for a taxation year by

an individual who was resident in the province on the last day of the taxation

year and who performs eligible volunteer firefighting services in the year,

there may be deducted the amount determined by multiplying $3,000 by the

appropriate percentage for the year if the individual

(

a) performs in the year not less than 200 hours

of services each of which is an hour of

(

i) eligible volunteer firefighting services for a

fire department, or

(ii) eligible search and rescue volunteer services

for an eligible search and rescue organization;

(

b) provides the certificates referred to in

subsections 118.06(3) and 118.07(3) of the federal Act when requested by the Minister

of National Revenue; and

(

c) has not deducted an amount under

section 17.4

for the year.

Search and rescue

volunteer tax credit

17.4 For

the purpose of computing the tax payable under this Part for a taxation year by

an individual who was resident in the province on the last day of the taxation

year and who performs eligible search and rescue volunteer services in the

year, there may be deducted the amount determined by multiplying $3,000 by the

appropriate percentage for the year if the individual

(

a) performs in the year not less than 200 hours

of services each of which is an hour of

(

i) eligible search and rescue volunteer services

for an eligible search and rescue organization, or

(ii) eligible volunteer firefighting services for a

fire department;

(

b) provides the certificates referred to in

subsections 118.07(3) and 118.06(3) of the federal Act when requested by the Minister

of National Revenue; and

(

c) has not deducted an amount under

section 17.3

for the year.

3. Paragraph 44(1)(

a) of the Act is repealed and

the following substituted:

(

a) the product of

(

i) the corporation tax rate in

section 40,

(ii) the foreign investment income of the

corporation for the year from sources in the country, and

(iii) that proportion that the corporation's taxable

income earned in the year in the province is of the corporation's taxable

income earned in the year; or

Commencement

4. (1) Subsection 1(2) is considered to have come

into force on January 1, 2015.

(2) Subsection 1(1) and

section 2 come into force

on January 1, 2020.

(3) Section 3 is considered to have come into

force on January 1, 2016.

Queen's Printer