This consolidation is unofficial and is for reference only.

For the official version of the regulations, consult the original documents on file with the Office of the Registrar of Regulations , or refer to the Royal Gazette

Part II .

Regulations are amended frequently.

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

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New Small Business Regulations

made under

Section 42 of the

Income Tax Act

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

O.I.C. 2002-322 (June 28, 2002), N.S. Reg. 87/2002

amended to O.I.C. 2022-227 (effective September 13, 2022), N.S. Reg. 212/2022

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definition

Application of regulations

Order in which deduction to be taken under

Section 42 of the Act

Time limit for application for certificate of eligibility

Citation

1 These regulations may be cited as the New Small Business Regulations .

Definition

2 In these regulations, “Act” means the Income Tax Act .

Application of regulations

3 These regulations apply to a taxation year of a corporation ending on or after March 30,

4 In addition to the eligibility requirements set out in

Section 42 of the Act, a corporation

is not eligible for a deduction pursuant to subsection 42(4) of the Act unless the

corporation employs at least 2 individuals, including 1 or more individuals who meet all

of the following conditions:

(

a) they are not related to a specified shareholder of the Corporation;

(

b) their total paid hours of employment are not less than 1300 in a 12-month

period, or an equivalent amount pro-rated for a short taxation year.

Order in which deduction to be taken under

Section 42 of the Act

(1) Where a corporation is eligible in a taxation year for a deduction pursuant to

subsection 42(4) of the Act, the corporation shall not calculate the deduction or

reduce its tax payable by the amount of the deduction until the corporation has

made all other allowable deductions to tax payable to which it is entitled pursuant

to the Act.

(2) For greater certainty, all other allowable deductions to tax payable that are referred

to in subsection (1) include the deductions allowed pursuant to Sections 41, 47 and

49 of the Act.

Time limit for application for certificate of eligibility

6 For the purposes of subsection 42(12) of the Act, a corporation is not eligible for a

certificate of eligibility unless the corporation applies to the Minister within the 3 years

immediately following the taxation year for which the deduction is to be claimed.

Legislative History

Reference Tables

New Small Business Regulations

N.S. Reg.

87/2002

Income Tax Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the New Small Business Regulations made under the Income Tax Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

87/2002

Jun 28, 2022

date made

Jul 26, 2002

212/2022

Sep 13, 2022

date specified

Sep 23, 2022

The following regulations are not

yet in force and are not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

4 ........................................................

rs . 212/2022

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

Repealed and Superseded

N.S.

Regulation

Title

In force

date

Repealed

date

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.