Income Tax Amendments Act, 2000 (S.C. 2001, c. 17)
Full Document:
Assented to 2001-06-14
101. (1) Subparagraph (ii) of the description of A in paragraph 118.81(a) of the Act is replaced by the following:
(ii) $800, and
(2) Subsection (1) applies to the 2001 and subsequent taxation years.
102. (1) Section 119 of the Act is repealed.
(2) The Act is amended by adding the following after section 118.95:
Marginal note:Former resident — credit for tax paid
119. If at any particular time an individual was deemed by subsection 128.1(4) to have disposed of a capital property that was a taxable Canadian property of the individual throughout the period that began at the particular time and that ends at the first time, after the particular time, at which the individual disposes of the property, there may be deducted in computing the individual’s tax payable under this Part for the taxation year that includes the particular time the lesser of
(a) that proportion of the individual’s tax for the year otherwise payable under this Part (within the meaning assigned by paragraph (a) of the definition “tax for the year otherwise payable under this Part” in subsection 126(7)) that
(i) the individual’s taxable capital gain from the disposition of the property at the particular time
is of
(ii) the amount determined under paragraph 114(a) in respect of the individual for the year, and
(b) that proportion of the individual’s tax payable under Part XIII in respect of dividends received during the period by the individual in respect of the property and amounts deemed under Part XIII to have been paid during the period to the individual as dividends from corporations resident in Canada, to the extent that the amounts can reasonably be considered to relate to the property, that
(i) the amount by which the individual’s loss from the disposition of the property at the end of the period is reduced by subsection 40(3.7)
is of
(ii) the total amount of those dividends.
(3) Subsection (1) applies to the 1995 and subsequent taxation years.
(4) Subsection (2) applies to dispositions after December 23, 1998 by individuals who cease to be resident in Canada after October 1, 1996.
103. (1) The portion of subsection 120(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Income not earned in a province
120. (1) There shall be added to the tax otherwise payable under this Part by an individual for a taxation year the amount that bears the same relation to 48% of the tax otherwise payable under this Part by the individual for the year that
(2) Subsection 120(2.1) of the Act is repealed.
(3) Paragraphs 120(3)(a) and (b) of the Act are replaced by the following:
(a) if section 114 applies to the individual in respect of the year, the amount determined under paragraph 114(a) in respect of the individual for the year;
(b) if the individual was non-resident throughout the year, the individual’s taxable income earned in Canada for the year determined without reference to paragraphs 115(1)(d) to (f); and
(4) Clause (a)(ii)(A) of the definition “tax otherwise payable under this Part” in subsection 120(4) of the Act is replaced by the following:
(A) section 119, subsection 120.4(2) and sections 126, 127, 127.4 and 127.41, and
(5) Subsection (1) applies to the 2000 and subsequent taxation years.
(6) Subsections (2) and (4) apply to the 1996 and subsequent taxation years except that, in its application to taxation years that end before 2000, subsection (4) shall be read as follows:
(4) Paragraph (b) of the definition “tax otherwise payable under this Part” in subsection 120(4) of the Act is replaced by the following:
(b) the amount that, but for this section and subsection 117(6), would be the tax payable under this Part by the individual for the year if this Part were read without reference to any of sections 119, 126, 127 and 127.4.
(7) Subsection (3) applies to the 1998 and subsequent taxation years except that, for taxation years that end before 2000, paragraphs 120(3)(a) and (b) of the Act, as enacted by subsection (3), shall be read as follows:
(a) if section 114 applies to the individual in respect of the year, the amount determined under paragraph 114(a) in respect of the individual for the year; and
(b) if the individual was non-resident throughout the year, the individual’s taxable income earned in Canada for the year determined without reference to paragraphs 115(1)(d) to (f).
104. (1) Subsection 120.2(4) of the Act is replaced by the following:
Marginal note:Where subsection (1) does not apply
(4) Subsection (1) does not apply in respect of an individual’s return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(f) or subsection 150(4).
(2) Subsection (1) applies to the 1996 and subsequent taxation years.
105. (1) Subsection 122(2) of the Act is amended by striking out the word “and” at the end of paragraph (d), by adding the word “and” at the end of paragraph (e) and by adding the following after paragraph (e):
(f) has not received any property after December 17, 1999, where
(i) the property was received as a result of a transfer from another trust,
(ii) subsection (1) applied to a taxation year of the other trust that began before the property was so received, and
(iii) no change in the beneficial ownership of the property resulted from the transfer.
(2) Subsection (1) applies to the 1999 and subsequent taxation years.
106. (1) Paragraph 122.3(1)(e) of the Act is replaced by the following:
(e) the amount, if any, by which
(i) if the individual is resident in Canada throughout the year, the individual’s income for the year, and
(ii) if the individual is non-resident at any time in the year, the amount determined under paragraph 114(a) in respect of the taxpayer for the year
exceeds
(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) or deductible under paragraph 110(1)(d.2), (d.3), (f) or (j) in computing the individual’s taxable income for the year.
(2) Subsection (1) applies to the 1998 and subsequent taxation years.
107. (1) Section 122.5 of the Act is amended by adding the following after subsection (5):
Marginal note:Exception
(5.1) No amount is deemed to be paid under subsection (3) by an individual for the 2000 taxation year if the individual is confined to a prison or similar institution at any time during the 12-month period that ends on June 30, 2002, unless the individual satisfies the Minister that the individual’s confinement is for a period of not more than six months included in that 12-month period.
(2) Subsection (1) applies to amounts deemed to be paid during months specified for the 2000 taxation year.
108. (1) Paragraph (b) of the description of A in subsection 122.51(2) of the Act is amended by replacing the reference to the fraction “25/17” with a reference to the fraction “25/16”.
(2) Subsection (1) applies to the 2001 and subsequent taxation years.
109. (1) Paragraph (e) of the definition “eligible individual” in section 122.6 of the Act is amended by striking out the word “or” at the end of subparagraph (ii), by adding the word “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):
(iv) was determined before that time to be a member of a class defined in the Humanitarian Designated Classes Regulations made under the Immigration Act,
(2) Subsection (1) applies in respect of overpayments deemed to arise during months that are after June 2001.
110. (1) The portion of the description of B in subsection 122.61(1) of the Act before paragraph (a) is replaced by the following:
- B
- is 4% (or where the person is an eligible individual in respect of only one qualified dependant at the beginning of the month, 2%) of the amount, if any, by which
(2) Paragraph (b) of the description of B in subsection 122.61(1) of the Act is replaced by the following:
(b) the greater of $32,000 and the dollar amount, as adjusted annually and referred to in paragraph 117(2)(a), that is used for the calendar year following the base taxation year; and
(3) Paragraphs (a) and (b) of the description of F in subsection 122.61(1) of the Act are replaced by the following:
(a) only one qualified dependant, $1,255, and
(b) two or more qualified dependants, the total of
(i) $1,255 for the first qualified dependant,
(ii) $1055 for the second qualified dependant, and
(iii) $980 for each of the third and subsequent qualified dependants,
(4) Subsection 122.61(6.1) of the Act is replaced by the following:
Marginal note:Agreement with a province
(6.1) Notwithstanding subsection (5), for the purposes of any agreement referred to in section 122.63 with respect to overpayments deemed to arise during months that are after June 2001 and before July 2002, the amount determined under subparagraph (5)(b)(ii) for a month referred to in paragraph (6)(b) is deemed to be 0.012.
(5) Subsection (1) applies with respect to overpayments deemed to arise during months that are after June 2004.
(6) Subsections (2) and (3) apply with respect to overpayments deemed to arise during months that are after June 2001.
(7) Subsection (4) applies in respect of overpayments deemed to arise during months that are after June 2001 and before July 2002.
- Date modified: