First

Session, 48th General Assembly

Elizabeth II, 2016

BILL 16

AN ACT TO AMEND THE

INCOME TAX ACT, 2000 NO. 4

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

Second Reading .................................................................................................................................

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

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

CATHY BENNETT

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

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

financial corporations capital tax rate from 5% to 6%.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

NO. 4

Analysis

S.66.2 Amdt.

Capital tax payable

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(1) Subsection 66.2(1) of the Income Tax Act, 2000 is repealed and the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 taxation year equal to 6% of the amount, if any, by which its taxable

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

deduction for the year.

(2) Subsection 66.2(4) of the Act is repealed and

the following substituted:

(4) Notwithstanding subsection (1), if a corporations

taxation year includes January 1, 2016, the tax payable under this Part by that

corporation for the taxation year is the amount, if any, determined when the

corporations taxable capital employed in the province for the taxation year is

reduced by its capital deduction for the year and multiplied by the total of

(

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

in the taxation year that are before January 1, 2016 is of the number of days

in the taxation year; and

(

b) that proportion of 6% that the number of days

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

in the taxation year.

Commencement

2. This Act is considered to have come into force

on January 1, 2016.

Queen's Printer