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Part II .

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Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with the Registry that are not yet included in this consolidation.

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Deduction Regulations

made under

Section 80 of the

Income Tax Act

R.S.N.S. 1989, c. 217

O.I.C. 73-105 (February 6, 1973), N.S. Reg. 11/73

as amended up to & including O.I.C. 2008-388 (July 29, 2008), N.S. Reg. 336/2008

Tax Deductions

Definitions

100 In this Part

(a) “employee” means any person receiving remuneration who reports for work

at an establishment of the employer in Nova Scotia;

(b) “employer”, “exemptions”, “remuneration”, “estimated deductions”, “total

remuneration” and “pay” have the meaning given to those expressions in

Section 100 of the Federal Regulations;

Clause 100(

b) amended: O.I.C. 81-74, N.S. Reg. 5/81.

and,

(c) subsections (3) and (4) of

Section 100 of the Federal Regulations are

applicable mutatis mutandis.

Amount to be deducted

101 Any person who makes a payment described in subsection (1) of

Section 11 of the Act

shall deduct and withhold therefrom, and remit to the Receiver General of Canada, such

amount, if any, as is hereinafter prescribed.

[Note: Effective January 1, 2000, the Financial Measures

(2000) Act amends the Act to eliminate the

provisions respecting the stock savings plan tax credit, which were contained in

Section 11.]

(1) Except as otherwise provided in this Part, the amount to be deducted or withheld

by an employer from any payment of remuneration to an employee shall be

determined in the case of an employee who reports for work at an establishment of

the employer in Nova Scotia as 105/287 of the amount determined in accordance

with Table 402 as set forth in

Schedule “I” to the Federal Regulations, having

regard to the amount of the remuneration, the length of the pay period in respect of

which the remuneration is paid and the employee’s exemptions for his taxation

year in which the remuneration is paid.

Subsection 102(1) replaced: O.I.C. 81-74, N.S. Reg. 5/81.

(2) Notwithstanding subsection (1), where an employee has elected pursuant to

subsection 107(2) and has not revoked such election, the amount to be deducted or

withheld by the employer in a taxation year from any payment of remuneration (in

this subsection referred to as the “payment”) that is

(

a) in respect of commissions or is a combined payment of commissions and

salary or wages; or

(

b) in respect of salary or wages where the employee is remunerated by a

combination of commissions and salary or wages,

made in the taxation year to an employee who reports for work at an establishment

of the employer in Nova Scotia, 105/287 of the product obtained by multiplying

the amount of the payment by the appropriate decimal fraction set out in Table

402A, as set forth in

Schedule “I” to the Federal Regulations, having regard to the

amounts of total remuneration and of exemptions and estimated deductions in

respect of the taxation year in which the payment was made.

Subsection 102(2) replaced: O.I.C. 81-74, N.S. Reg. 5/81.

(3) Except as otherwise provided in this Part, where an employer pays to an employee

an amount of remuneration that is not provided for in a Table referred to in

subsection (1) or (2), the amount to be deducted or withheld by the employer from

such payment shall be in the case of an employee who reports for work at an

establishment of the employer in Nova Scotia, 105/287 of the amount indicated in

Column (1), (2), (3), (4) or (5) of Table 402B as set forth in

Schedule “I” to the

Federal Regulations having regard to the length of the pay period in respect of

which the remuneration is paid and the employee’s pay and exemptions for his

taxation year in which the remuneration is paid.

Subsection 102(3) replaced: O.I.C. 81-74, N.S. Reg. 5/81.

(4) In subsection (3), the employee’s pay for his taxation year in which the

remuneration is paid is the product obtained when the amount of the remuneration

for the pay period is multiplied by the number of pay periods that the employee

may reasonably be expected to have in that year.

Subsection 102(4) replaced: O.I.C. 81-74, N.S. Reg. 5/81.

(5) Notwithstanding subsections (1) to (3), no amount shall be deducted or withheld in

the year by an employer from a payment of remuneration to an employee in respect

of commissions earned by him in the immediately preceding year where those

commissions were previously reported by the employer as remuneration of the

employee for that year on an information return.

Subsection 102(5) added: O.I.C. 81-74, N.S. Reg. 5/81.

(6) For purposes of subsection (5), an employee includes a former employee.

Subsection 102(6) added: O.I.C. 81-74, N.S. Reg. 5/81.

(1) Where a payment in respect of a bonus or retroactive increase in remuneration is

made by an employer to an employee whose total remuneration from the employer

(including the bonus or retroactive increase) may reasonably be expected not to

exceed $5,000 in the calendar year in which the payment is made, the employer

shall deduct or withhold, in the case of an employee who reports for work at an

establishment of the employer in Nova Scotia, 105/287 of 15 percent of such

payment in lieu of the amount determined under

Section 102.

Subsection 103(1) replaced: O.I.C. 77-1485, N.S. Reg. 158/77.

(2) Where a payment in respect of a bonus is made by an employer to an employee

whose total remuneration from the employer (including the bonus) may reasonably

be expected to exceed $5,000 in the taxation year of the employee in which the

payment is made, the amount to be deducted or withheld therefrom by the

employer is

(

a) the amount determined under

Section 102 in respect of an assumed

remuneration equal to the aggregate of

(

i) the amount of regular remuneration paid by the employer to the

employee in the pay period in which the remuneration is paid, and

(ii) an amount equal to the bonus payment divided by the number of pay

periods in the taxation year of the employee in which the payment is

made

minus

(

b) the amount determined under

Section 102 in respect of the amount of regular

remuneration paid by the employer to the employee in the pay period

multiplied by

(

c) the number of pay periods in the taxation year of the employee in which the

payment is made.

(3) Where a payment in respect of a retroactive increase in remuneration is made by an

employer to an employee whose total remuneration from the employer (including

the retroactive increase) may reasonably be expected to exceed $5,000 in the

taxation year of the employee in which the payment is made, this amount to be

deducted or withheld therefrom by the employer is

(

a) the amount determined under

Section 102 in respect of the new rate of

remuneration

minus

(

b) the amount determined under

Section 102 in respect of the previous rate of

remuneration

multiplied by

(

c) the number of pay periods in respect of which the increase in remuneration is

retroactive.

(4) In respect of a payment described in

Section 40 of the Federal Income Tax

Application Rules 1971 and made by an employer to an employee who is a

resident of Canada,

(

a) where the payment does not exceed $5,000 the employer shall deduct or

withhold therefrom, in the case of an employee who reports for work at an

establishment of the employer in Nova Scotia, 105/287 of 10 percent of such

payment in lieu of an amount determined under

Section 102;

(

b) where the payment exceeds $5,000 but does not exceed $15,000 the

employer shall deduct or withhold therefrom, in the case of an employee who

reports for work at an establishment of the employer in Nova Scotia, 105/287

of 20 percent of such payment in lieu of an amount determined under

Section

102, and

(

c) where the payment exceeds $15,000 the employer shall deduct or withhold

therefrom, in the case of an employee who reports for work at an

establishment of the employer in Nova Scotia, 105/287 of 30 percent of such

payment in lieu of an amount determined under

Section 102.

Subsection 103(4) replaced: O.I.C. 78-83, N.S. Reg. 8/78.

(5) Subsections (4a) and (5) of

Section 103 of the Federal Regulations are applicable

mutatis mutandis for the purpose of this Section.

Subsection 103(5) replaced: O.I.C. 75-1201, N.S. Reg. 118/75.

Application of federal regulations

(1) No amount shall be deducted or withheld from a payment in accordance with

Section 102 or 103 where, because of

Section 104 of the Federal Regulations, no

deduction is required to be made under Sections 102 or 103 of those regulations.

(2) Sections 106 and 107 and subsections (1), (2), (3) and (4) of

Section 108 of the

Federal Regulations are applicable mutatis mutandis to this Part.

105 These regulations shall be deemed to be effective January 1, 1972.

Political Contributions

Interpretation

(1) In Regulations [Sections] 107 and 108,

“contribution” means a contribution as defined in the Members and Public

Employees Disclosure Act and the regulations made under that Act;

“official receipt” means a receipt for the purposes of subsection 4B(3) [50(3)] of

the Act containing information as provided in subsection 107(1) or (2), as the case

may be;

“official receipt form” means any printed form that has been prescribed for the

purpose by the Chief Electoral Officer.

Subsection 106(1) amended: O.I.C. 2008-388, N.S. Reg. 336/2008.

(2) [In] Regulations [Sections] 107 and 108, “official agent”, “ordinary polling day”,

“recognized party” and “candidate officially nominated”, have the meanings

assigned to them by

Section 3 of the Elections Act.

Section 106 added: O.I.C. 81-970, N.S. Reg. 107/81.

[Note: the Elections Act , R.S.N.S. 1989, c. 140, is repealed effective January 1, 2012, by the Elections Act ,

S.N.S. 2011, c. 5. The reference in this subsection is to the former Act.]

(1) Every official receipt issued by an official agent of a recognized party shall contain

a statement that it is an official receipt for Nova Scotia income tax purposes and

shall, in a manner that cannot readily be altered, show clearly

(

a) the full name of the recognized party;

(

b) the serial number of the receipt;

(

c) the name of the official agent as recorded in the registry maintained by the

Chief Electoral Officer pursuant to the Elections Act;

(

d) the day on which the receipt was issued;

(

e) where the person making the contribution is

(

i) a person other than an individual, the day on which the contribution

was received where that day differs from the day referred to in

paragraph [clause] (d), or

(ii) an individual, the calendar year during which the contribution was

received;

(

f) the name and address of the person making the contribution including, in the

case of an individual, his first name or initial;

(

g) the amount of the contribution; and

(

h) the signature of the official agent, which may be a facsimile signature.

(2) Subject to subsection (3), every official receipt issued by an official agent of a

candidate officially nominated shall contain a statement that it is an official receipt

for Nova Scotia income tax purposes and shall, in a manner that cannot readily be

altered, show clearly

(

a) the name of the candidate officially nominated;

(

b) the serial number of the receipt;

(

c) the name of the official agent;

(

d) the day on which the receipt was issued;

(

e) the day on which the contribution was received where that day differs from

the day referred to in paragraph [clause] (d);

(

f) the date of the ordinary polling day;

(

g) the name and address of the person making the contribution including, in the

case of an individual, his first name or initial;

(

h) the amount of the contribution; and

(

i) the signature of the official agent.

(3) The information required by paragraph [clause] (2)(

f) may be shown by use of a

code on an official receipt form issued by the Chief Electoral Officer, provided that

the Minister is advised of the meaning of the code used.

(4) For the purposes of subsections (1) and (2), an official receipt issued to replace an

official receipt previously issued shall show clearly that it replaces the original

receipt and, in addition to its own serial number, shall show the serial number of

the receipt originally issued.

(5) All spoiled official receipt forms shall be marked “cancelled” and such forms

together with the duplicates thereof, shall be filed by the official agent, with the

Chief Electoral Officer, together with the duplicates of receipts required to be filed

with the Minister pursuant to subsection 4B(3) [50(3)] of the Act.

(6) Every official receipt form on which

(

a) the day on which the contribution was received;

(

b) the year during which the contribution was received, or

(

c) the amount of the contribution,

was incorrectly or illegibly entered shall be regarded as spoiled.

Section 107 added: O.I.C. 81-970, N.S. Reg. 107/81.

Filing receipts

(1) The duplicates of all official receipts issued by an official agent of a recognized

party shall be filed by an official agent with the Chief Electoral Officer on or

before the last day of March in each year and shall be in respect of the preceding

calendar year.

(2) The duplicates of official receipts issued by an official agent of a candidate shall be

filed by an official agent with the Chief Electoral Officer on the same day as he

files his election expense report pursuant to the Elections Act.

Section 108 added: O.I.C. 81-970, N.S. Reg. 107/81.

[Please note: The enabling

Section of these regulations and the cross-references made throughout have been

updated to reflect amendments made to the Act pursuant to

Section 61 of the Financial Measures

(2000) Act ,

S.N.S. 2000, c. 4.]