Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 8

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

include eligible search and rescue

volunteer service hours in the 200 hours of service required to be eligible to

claim the volunteer firefighters' tax credit; and

introduce a search and rescue volunteer

tax credit.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.5 Amdt.

Definitions

S.15 Amdt.

Unused tuition and education amounts

S.17.3 R&S

Volunteer firefighters' tax credit

S.17.4 Added

Search and rescue volunteer tax credit

S.18 Amdt.

Tax credit transfer

S.23 Amdt.

Ordering of 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

Section 5 of the Income Tax Act, 2000 is amended by renumbering paragraph (a.1) as paragraph

(a.3) and adding immediately before that paragraph the following:

(a.1) "eligible search and rescue

organization" means eligible search and rescue organization as defined in

subsection 118.07(1) of the federal Act;

(a.2) "eligible search and rescue volunteer

services" means eligible search and rescue volunteer services as defined

in subsection 118.07(1) of the federal Act;

2. (1) Paragraph 15(1)(

b) of the Act is repealed

and the following substituted:

(

b) amount that would be the individual's tax

payable under this Part for the year if no amount were deductible under this

Part, other than an amount deductible under this

section and

section 9, 12, 17,

17.1, 17.2, 17.3 or 17.4.

(2) Subsection 15(2) of the Act is repealed and

the following substituted:

(2) An individual's unused tuition and education

tax credits at the end of the taxation year is the amount determined by the

formula

A + (B - C) - (D +

E) where

A is

the individual's unused tuition and education credits at the end of the

preceding taxation year;

B is

the total of all amounts, each of which may be deducted under sections 13 and

14 in computing the individual's tax payable under this Part for the year;

C is

the lesser of the value of B and the amount that would be the individual's tax

payable under this Part for the year if no amount were deductible under this

Part, other than an amount deductible under this

section and

section 9, 12, 17,

17.1, 17.2, 17.3 or 17.4;

D is

the amount that the individual may deduct under subsection (1) for the year;

and

E is

the tuition and education tax credits transferred for the year by the

individual to the individual's spouse, common law partner, parent or

grandparent.

Section 17.3 of the Act is repealed and the

following substituted:

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 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.

4. The Act is amended by adding immediately after

section 17.3 the following:

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 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.

5. (1) Paragraph 18(1)(

a) of the Act is repealed

and the following substituted:

(

a) the amount that would be the spouse's or common

law partner's tax payable under this Part for the year, or that would be so

payable under this Part for the year if the spouse or common law partner were

liable under

section 6 to pay tax for the year, if no amount were deductible

under this Part, other than an amount deductible under paragraph 9(1)(

c) and

sections 15, 17, 17.1, 17.2, 17.3 and 17.4;

(2) Subparagraph 18(1)(b)(ii) of the Act is

repealed and the following substituted:

(ii) the amount that would be the spouse's or

common law partner's tax payable under this Part for the year, or that would be

so payable under this Part for the year if the spouse or common law partner

were liable under

section 6 to pay tax for the year, if no amount were

deductible under this Part other than an amount deductible under sections 9,

12, 15, 17, 17.1, 17.2, 17.3 and 17.4.

(3) Paragraph 18(3)(

a) of the Act is repealed and

the following substituted:

(

a) the amount determined by the formula

A - B

where

A is

the lesser of

(

i) the

total of all amounts that may be deducted under sections 13 and 14 in computing

the person's tax payable under this Part for the year, or that would be so

deductible if the person were liable under

section 6 to pay tax for the year,

and

(ii)

the amount obtained by multiplying $5,000 by the appropriate percentage for the

taxation year; and

B is

the amount that would be the person's tax payable under this Part for the year

if no amount were deductible under this Part other than an amount deductible

under sections 9, 12, 15, 17, 17.1, 17.2, 17.3 and 17.4; and

6. Subsection 23(2) of the Act is amended by

adding immediately after paragraph (b.4) the following:

(b.5)

section 17.4;

Commencement

7. This Act comes into force on January 1, 2019.

Queen's Printer