Income Tax Act

Version of section 119.1 from 2015-06-23 to 2016-06-21:

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

    adjusted base tax payable

    impôt payable de base rajusté

    adjusted base tax payable, of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year, if

    • (a) the individual’s taxable income for the year were the individual’s split-adjusted income for the year; and

    • (b) no amount were deductible under this Division other than the individual’s adjusted non-refundable tax credits amount for the year. (impôt payable de base rajusté)

    adjusted non-refundable tax credits amount

    montant de crédits non remboursables rajustés

    adjusted non-refundable tax credits amount, of an individual for a taxation year, means the amount determined by the formula

    A + B

    where

    A
    is the total of all amounts, each of which is an amount claimed by the individual — not exceeding the amount that may be deducted by the individual — in computing the individual’s tax payable for the taxation year
    • (a) under any of subsections 118(2), (3) and (10) and sections 118.01 to 118.07, 118.1 to 118.3, 118.5 to 118.7 and 118.9, and

    • (b) under section 118.8, not exceeding the amount determined by the formula

      A1 – A2

      where

      A1
      is the amount determined for the description of A in section 118.8 for the taxation year, and
      A2
      is the amount, if any, by which the amount determined for the description of C in section 118.8 for the taxation year exceeds the amount determined for the description of B in that section for the taxation year; and
    B
    is the amount that would be deductible by the individual under subsection 118(1) in computing the individual’s tax payable for the taxation year if
    • (a) the dollar amount set out in the formula in subparagraph (a)(ii) of the description of B in that subsection were nil, and

    • (b) the amount determined for the description of C.1 in subparagraph (a)(ii) of the description of B in that subsection were determined by the formula

      C – D

      where

      C
      is the income of the individual’s spouse or common-law partner for the year, and
      D
      is the dollar amount set out in subparagraph (a)(i) of the description of B in that subsection.

    base tax payable

    impôt payable de base

    base tax payable, of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division other than an amount deductible under any of sections 118 to 118.9. (impôt payable de base)

    combined adjusted base tax payable

    impôt payable de base rajusté réuni

    combined adjusted base tax payable, of a qualifying individual for a taxation year, means the total of the qualifying individual’s adjusted base tax payable for the year and the adjusted base tax payable for the year of the qualifying individual’s eligible relation. (impôt payable de base rajusté réuni)

    combined base tax payable

    impôt payable de base réuni

    combined base tax payable, of a qualifying individual for a taxation year, means the total of the qualifying individual’s base tax payable for the year and the base tax payable for the year of the qualifying individual’s eligible relation. (impôt payable de base réuni)

    eligible relation

    proche admissible

    eligible relation, of a particular individual for a taxation year, means an individual who

    • (a) is resident in Canada,

      • (i) if the individual dies in the year, at the time that is immediately before the individual’s death, and

      • (ii) in any other case, at the end of the year; and

    • (b) is at any time in the year, married to, or in a common-law partnership with, the particular individual and not, by reason of the breakdown of their marriage or common-law partnership, living separate and apart from the particular individual at the end of the year and for a period of at least 90 days commencing in the year. (proche admissible)

    qualifying individual

    particulier admissible

    qualifying individual, for a taxation year, means an individual who

    • (a) has an eligible relation for the year who has not deducted an amount under this section for the year;

    • (b) has a child who

      • (i) is under the age of 18 years at the end of the year, and

      • (ii) ordinarily resides throughout the year with the individual or the individual’s eligible relation for the year;

    • (c) is resident in Canada,

      • (i) if the individual dies in the year, at the time that is immediately before the individual’s death, and

      • (ii) in any other case, at the end of the year; and

    • (d) is not confined to a prison or similar institution for a period of at least 90 days during the year. (particulier admissible)

    split-adjusted income

    revenu rajusté par fractionnement

    split-adjusted income, of an individual for a taxation year, means

    • (a) if the individual’s taxable income for the year is greater than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income less the individual’s split adjustment for the year;

    • (b) if the individual’s taxable income for the year is less than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income plus the individual’s split adjustment for the year; and

    • (c) in any other case, the amount that is equal to the individual’s taxable income for the year. (revenu rajusté par fractionnement)

    split adjustment

    rajustement par fractionnement

    split adjustment, of an individual for a taxation year, means the lesser of $50,000 and one half of the absolute value of the positive or negative amount determined by the formula

    A – B

    where

    A
    is the individual’s taxable income for the year; and
    B
    is the taxable income for the year of the individual’s eligible relation.
  • Marginal note:Family tax cut credit

    (2) For the purpose of computing the tax payable under this Part by a qualifying individual for a taxation year, there may be deducted the lesser of $2,000 and the amount determined by the formula

    A – B

    where

    A
    is the qualifying individual’s combined base tax payable for the year; and
    B
    is the qualifying individual’s combined adjusted base tax payable for the year.
  • Marginal note:Deduction not available

    (3) No amount is deductible under subsection (2) in computing an individual’s tax payable under this Part for a taxation year if the individual or the individual’s eligible relation

    • (a) does not file with the Minister a return of income in respect of the taxation year;

    • (b) becomes bankrupt in the calendar year in which the taxation year ends; or

    • (c) makes an election for the taxation year under section 60.03.

  • Marginal note:Taxation year deeming rules

    (4) For the purpose of applying the definition qualifying individual in subsection (1), in determining whether a child ordinarily resides throughout a taxation year with an individual or the individual’s eligible relation, the taxation year is deemed not to include

    • (a) in the case of a child who is born or is adopted in the year, the portion of the year before the child’s birth or adoption;

    • (b) in the case of an individual who marries or becomes a common-law partner at any time in the year, the portion of the year before that time;

    • (c) in the case of an individual, an eligible relation of an individual or a child who dies in the year, the portion of the year after the death; and

    • (d) in the case of an individual or an eligible relation of an individual who becomes resident in Canada in the year, any portion of the year in which the person is non-resident.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2015, c. 36, s. 32.
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