First

Session, 50th General Assembly

Elizabeth II, 2021

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 SIOBHAN

COADY

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 increase the

rate of personal income tax payable for the higher income ranges.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.7 R&S

Amount of 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

Section 7 of the Income Tax Act, 2000 is repealed and the following substituted: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

individual's taxable income or taxable income earned in Canada, in sections 6

to 33 referred to as the "taxable income" for the 2022 taxation year

and subsequent taxation years is

(

a) if the taxable income does not exceed $38,081,

8.7% of the taxable income;

(

b) if the taxable income exceeds $38,081 and does

not exceed $76,161, the maximum amount determinable in respect of the taxation

year under paragraph (

a) plus 14.5% of the amount by which the taxable income

exceeds $38,081 for the year;

(

c) if the taxable income exceeds $76,161 and does

not exceed $135,973, the maximum amount determinable in respect of the taxation

year under paragraph (

b) plus 15.8% of the amount by which the taxable income

exceeds $76,161 for the year;

(

d) if the taxable income exceeds $135,973 and

does not exceed $190,363, the maximum amount determinable in respect of the

taxation year under paragraph (

c) plus 17.8% of the amount by which the taxable

income exceeds $135,973 for the year;

(

e) if the taxable income exceeds $190,363 and

does not exceed $250,000, the maximum amount determinable in respect of the

taxation year under paragraph (

d) plus 19.8% of the amount by which the taxable

income exceeds $190,363 for the year;

(

f) if the taxable income exceeds $250,000 and

does not exceed $500,000, the maximum amount determinable in respect of the

taxation year under paragraph (

e) plus 20.8% of the amount by which the taxable

income exceeds $250,000 for the year;

(

g) if the taxable income exceeds $500,000 and

does not exceed $1,000,000, the maximum amount determinable in respect of the

taxation year under paragraph (

f) plus 21.3% of the amount by which the taxable

income exceeds $500,000 for the year; and

(

h) if the taxable income exceeds $1,000,000, the

maximum amount determinable in respect of the taxation year under paragraph (

g) plus 21.8% of the amount by which the taxable income exceeds $1,000,000 for the

year.

(2) Notwithstanding

section 6.1, the amounts

referred to in paragraphs (1)(

a) to (

d) and the amount of $190,363 referred to

in paragraph (1)(

e) shall be adjusted as prescribed in that

section for the 2022

taxation year.

(3) Notwithstanding

section 6.1, the amount of

$250,000 referred to in paragraph (1)(

e) and the amounts referred to in

paragraphs (1)(f), (

g) and (

h) shall not be adjusted as prescribed in that

section before the 2023 taxation year.

Commencement

2. This Act comes into force on January 1, 2022.

Queen's Printer