Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2017-06-05 and last amended on 2017-05-01. Previous Versions

Marginal note:Modification for purposes of provincial program

 The Minister of Finance may enter into an agreement with the government of a province whereby the amounts determined under subsections 122.7(2) and (3) with respect to an eligible individual resident in the province at the end of the taxation year shall, for the purpose of calculating amounts deemed to be paid on account of the tax payable of an individual under those subsections, be replaced by amounts determined in accordance with the agreement.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2007, c. 35, s. 42.

SUBDIVISION A.3[Repealed, 2016, c. 7, s. 32]

 [Repealed, 2016, c. 7, s. 32]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2014, c. 39, s. 39;
  • 2016, c. 7, s. 32.

SUBDIVISION A.4School Supplies Tax Credit

Marginal note:Definitions
  •  (1) The following definitions apply in this section.

    eligible educator

    eligible educator, in respect of a taxation year, means an individual who, at any time during the taxation year,

    • (a) is employed in Canada as a teacher or an early childhood educator at

      • (i) an elementary or secondary school, or

      • (ii) a regulated child care facility; and

    • (b) holds a valid and recognized (in the province or territory in which the individual is employed)

      • (i) teaching certificate, licence, permit or diploma, or

      • (ii) certificate or diploma in early childhood education. (éducateur admissible)

    eligible supplies expense

    eligible supplies expense, of an eligible educator for a taxation year, means an amount (other than any amount deducted in computing any person’s income for any taxation year or any amount otherwise included in computing a deduction from any person’s tax payable under this Act for any taxation year) paid by the eligible educator in the taxation year for teaching supplies to the extent that

    • (a) the teaching supplies were

      • (i) purchased by the eligible educator for the purpose of teaching or facilitating students’ learning, and

      • (ii) directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the duties of the eligible educator’s employment; and

    • (b) the eligible educator is not entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the eligible educator and that is not deductible in computing the taxable income of the eligible educator) in respect of the amount paid. (dépense admissible)

    return of income

    return of income filed by an eligible educator for a taxation year means a return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the year or that would be required to be filed if the eligible educator had tax payable under this Part for the year. (déclaration de revenu)

    teaching supplies

    teaching supplies means

    • (a) consumable supplies; and

    • (b) prescribed durable goods. (fournitures scolaires)

  • Marginal note:Deemed overpayment

    (2) An eligible educator who files a return of income for a taxation year and who makes a claim under this subsection is deemed to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to the amount determined by the formula

    A × B

    where

    A
    is the appropriate percentage for the year; and
    B
    is the least of
    • (a) $1,000,

    • (b) the total of all amounts each of which is an eligible supplies expense of the eligible educator for the year, and

    • (c) if the eligible educator fails to provide the certificate referred to in subsection (3) in respect of the year, as and when requested by the Minister, nil.

  • Marginal note:Certificate

    (3) If the Minister so demands, an eligible educator making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from their employer, or a delegated official of the employer, attesting to the eligible supplies expenses of the eligible educator for the year.

  • Marginal note:Effect of bankruptcy

    (4) For the purposes of this subdivision, if an eligible educator becomes bankrupt in a particular calendar year, notwithstanding subsection 128(2), any reference to the taxation year of the eligible educator (other than in this subsection) is deemed to be a reference to the particular calendar year.

  • Marginal note:Part-year residents

    (5) If an eligible educator is resident in Canada throughout part of a taxation year and is non-resident throughout another part of the year, the total of the amounts that are deemed to be paid by the eligible educator under subsection (2) for the year cannot exceed the lesser of

    • (a) the total of

      • (i) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is not resident in Canada, computed as though that period or those periods were the whole taxation year, and

      • (ii) the amounts deemed to be paid under subsection (2) that can reasonably be considered as wholly applicable to the period or periods in the year throughout which the eligible educator is resident in Canada, computed as though that period or those periods were the whole taxation year; and

    • (b) the total of the amounts that would have been deemed to have been paid under subsection (2) for the year had the eligible educator been resident in Canada throughout the year.

  • Marginal note:Non-residents

    (6) Subsection (2) does not apply in respect of a taxation year of an eligible educator if the eligible educator is, at no time in the year, resident in Canada, unless all or substantially all the eligible educator’s income for the year is included in computing the eligible educator’s taxable income earned in Canada for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2016, c. 7, s. 33.

SUBDIVISION BRules Applicable to Corporations

Marginal note:Rate for corporations
  •  (1) The tax payable under this Part for a taxation year by a corporation on its taxable income or taxable income earned in Canada, as the case may be, (in this section referred to as its “amount taxable”) for the year is, except where otherwise provided,

    • (a) 38% of its amount taxable for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1970-71-72, c. 63, s. 1“123”;
  • 1984, c. 29, s. 90;
  • 1986, c. 55, s. 42;
  • 1988, c. 28, s. 250, c. 55, s. 100.
Marginal note:Corporation surtax

 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation (other than a corporation that was throughout the year an investment corporation or a non-resident-owned investment corporation) an amount equal to that proportion of 5% of the amount, if any, by which

  • (a) the tax payable under this Part by the corporation for the year determined without reference to this section, sections 123.2 and 126 (except for the purposes of subsection 125(1) and section 125.1), subsections 127(3) and (5), 127.2(1) and 127.3(1) of this Act and paragraph 123(1)(b) and subsection 127(13) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and as if subsection 124(1) of this Act were read without reference to the words “in a province” in that subsection

exceeds

  • (b) in the case of a Canadian-controlled private corporation to which subsection 125(1) applies, the amount, if any, by which

    • (i) 15% of the least of the amounts, if any, determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year

    exceeds

    • (ii) the amount, if any, determined under paragraph 125.1(1)(b) in respect of the corporation for the year,

  • (c) in the case of a mutual fund corporation, the least of the amounts that would be determined under paragraphs (a) to (c) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) in respect of the corporation for the year if this Act were read without reference to this section, and

  • (d) in any other case, nil

that the number of days in that portion of the year that is after June 30, 1985 and before 1987 is of the number of days in the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1972, c. 9, s. 2;
  • 1985, c. 45, s. 69;
  • 1986, s. 6, s. 69, c. 55, s. 43.
 
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