Budget Implementation Act, 2006 (S.C. 2006, c. 4)
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Assented to 2006-06-22
PART 5OTHER TAX-RELATED AMENDMENTS
R.S., c. 1 (5th Supp.)Income Tax Act
162. (1) Subsection 161.4(2) of the Act is replaced by the following:
Marginal note:Minister
(2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.
(2) Subsection (1) applies to amounts owing on or after April 1, 2007.
163. (1) Section 164 of the Act is amended by adding the following after subsection (2):
Marginal note:Withholding of refunds
(2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act have been filed with the Minister.
(2) Subsection (1) comes into force on April 1, 2007.
164. (1) Subsection 220(3) of the Act is replaced by the following:
Marginal note:Extensions for returns
(3) The Minister may at any time extend the time for making a return under this Act.
(2) Section 220 of the Act is amended by adding the following after subsection (3.7):
Marginal note:Dishonoured instruments
(3.8) For the purposes of this Act and section 155.1 of the Financial Administration Act
(a) any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Act is deemed to be an amount that becomes payable or remittable by the person at that time under this Act;
(b) sections 152, 158 and 159, subsections 161(1), (2) and (11), sections 162 to 167 and Division J of this Part are applicable to the amount deemed to become payable or remittable by this subsection with any modifications that the circumstances require;
(c) Part II of the Interest and Administrative Charges Regulations does not apply to the charge; and
(d) any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.
(3) Subsection (1) applies in respect of extensions granted on or after April 1, 2007.
(4) Subsection (2) applies in respect of any instrument that is dishonoured on or after April 1, 2007.
165. (1) Section 221.2 of the Act is renumbered as subsection 221.2(1) and is amended by adding the following:
Marginal note:Re-appropriation of amounts
(2) Where a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act or the Excise Act, 2001, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts,
(a) the later appropriation is deemed to have been made at the time of the earlier appropriation;
(b) the earlier appropriation is deemed not to have been made to the extent of the later appropriation; and
(c) the particular amount is deemed not to have been paid on account of the debt to the extent of the later appropriation.
(2) Subsection (1) applies in respect of re-appropriation applications made on or after April 1, 2007.
166. (1) Paragraph 225.1(1)(e) of the Act is repealed.
(2) Subsection (1) comes into force on April 1, 2007.
Conditional Amendment
Marginal note:Conditional amendment
167. If this Act receives royal assent after April 1, 2007,
(a) every reference in this Part to “April 1, 2007” is replaced by the day of that assent; and
(b) every reference in this Part to “March 31, 2007” is replaced by the day before the day of that assent.
PART 6UNIVERSAL CHILD CARE BENEFIT
Enactment of Act
Marginal note:Enactment of Act
168. The Universal Child Care Benefit Act is enacted as follows:
An Act to assist families by supporting their child care choices through direct financial support and to make consequential and related amendments to certain Acts
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Universal Child Care Benefit Act.
INTERPRETATION
Marginal note:Definitions
2. The following definitions apply in this Act.
“eligible individual”
« particulier admissible »
“eligible individual” means a person who is an eligible individual for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act.
“Minister”
« ministre »
“Minister” means the Minister of Human Resources and Skills Development.
“qualified dependant”
« personne à charge admissible »
“qualified dependant” means a person who has not attained the age of six years and who is a qualified dependant for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act.
PURPOSE
Marginal note:Purpose
3. The purpose of this Act is to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years.
BENEFIT
Marginal note:Amount of payment
4. (1) The Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, a benefit of $100 for each child who is a qualified dependant of the individual at the beginning of that month.
Marginal note:Limitation
(2) The benefit may not be paid in respect of any month before July, 2006.
Marginal note:Benefit cannot be charged, etc.
5. A benefit
(a) is not subject to the operation of any law relating to bankruptcy or insolvency;
(b) cannot be assigned, charged, attached or given as security;
(c) cannot be retained by way of deduction, set-off or, in Quebec, compensation, under any Act of Parliament other than this Act; and
(d) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Marginal note:Return of overpayment or erroneous payment
6. (1) A person who has received or obtained a benefit to which the person is not entitled, or a benefit in excess of the amount of the benefit to which the person is entitled, shall, as soon as possible, repay the amount of the benefit or the excess amount, as the case may be.
Marginal note:Recovery as a debt due to Her Majesty
(2) The amount of the overpayment or erroneous payment constitutes a debt due to Her Majesty, as of the day on which it was paid, that may be recovered by the Minister of National Revenue.
Marginal note:Limitation period
7. (1) Subject to this section, no action or proceedings shall be taken to recover money owing under this Act after the expiry of the six-year limitation period that begins on the day on which the money becomes due and payable.
Marginal note:Deduction and set-off
(2) Money owing by a person under this Act may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against, any sum of money, including a benefit under this Act, that may be due or payable by Her Majesty in right of Canada to the person, other than an amount payable under section 122.61 of the Income Tax Act.
Marginal note:Acknowledgment of liability
(3) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.
Marginal note:Acknowledgment after expiry of limitation period
(4) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5) after the expiry of the limitation period, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.
Marginal note:Types of acknowledgments
(5) An acknowledgment of liability means
(a) a written promise to pay the money owing, signed by the person or his or her agent or other representative;
(b) a written acknowledgment of the money owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;
(c) a part payment by the person or his or her agent or other representative of any money owing; or
(d) any acknowledgment of the money owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.
Marginal note:Limitation period suspended
(6) The running of a limitation period in respect of money owing under this Act is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under this Act.
Marginal note:Enforcement proceedings
(7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.
Marginal note:No interest payable
8. No interest is payable on any amount owing to Her Majesty under this Act as a result of an overpayment or an erroneous payment.
Marginal note:Authority to enter agreements
9. The Minister may enter into agreements or arrangements with any department, board or agency of the Government of Canada to assist the Minister in carrying out the purposes and provisions of this Act.
Marginal note:Payment out of C.R.F.
10. All amounts payable by the Minister under section 4 shall be paid out of the Consolidated Revenue Fund.
Consequential And Related Amendments
1992, c. 48, Sch.Children’s Special Allowances Act
169. The Children’s Special Allowances Act is amended by adding the following after section 2:
Marginal note:Interpretation
2.1 (1) Except for the purposes of sections 2, 3, 3.1 and 8, the expression “special allowance” is to be read as including the special allowance supplement described in section 3.1.
Marginal note:Interpretation
(2) For the purposes of the payment of a special allowance supplement under section 3.1, the reference to “January 1993” in paragraph 4(2)(c) is to be read as a reference to “July 2006”.
170. The Act is amended by adding the following after section 3:
Marginal note:Monthly special allowance supplement
3.1 If a special allowance is payable under section 3 for a child under the age of six, there shall be added to that special allowance a special allowance supplement in the amount of $100 to be paid out of the Consolidated Revenue Fund.
171. Paragraph 4(4)(d) of the Act is replaced by the following:
(d) reaches eighteen years of age or, in the case of a special allowance supplement paid under section 3.1, reaches six years of age.
1996, c. 23Employment Insurance Act
172. The definition “income” in section 144 of the Employment Insurance Act is replaced by the following:
“income”
« revenu »
“income” of a person for a period means the amount that would be their income for the period determined under the Income Tax Act if no amount were
(a) deductible under paragraphs 60(v.1), (w) and (y) of that Act,
(b) included in respect of a gain from a disposition of property to which section 79 of that Act applies, or
(c) included under subsection 56(6) of that Act;
R.S., c. 1 (5th Supp.)Income Tax Act
173. (1) Section 56 of the Income Tax Act is amended by adding the following after subsection (5):
Marginal note:Child care benefit
(6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts each of which is a benefit paid under section 4 of the Universal Child Care Benefit Act that is received in the taxation year by
(a) the taxpayer, if
(i) the taxpayer does not have a spouse or common-law partner at the end of the year, or
(ii) the income, for the taxation year, of the person who is the taxpayer’s spouse or common-law partner at the end of the taxation year is equal to or greater than the income of the taxpayer for the taxation year; or
(b) the taxpayer’s spouse or common-law partner at the end of the taxation year, if the income of the spouse or common-law partner for the taxation year is greater than the taxpayer’s income for the taxation year.
(2) Subsection (1) applies to amounts received after June 30, 2006.
174. (1) Section 60 of the Act is amended by striking out the word “and” at the end of paragraph (w), by adding the word “and” at the end of paragraph (x) and by adding the following after paragraph (x):
Marginal note:Repayment of UCCB
(y) the total of all amounts each of which is an amount paid in the taxation year as a repayment, under the Universal Child Care Benefit Act, of a benefit that was included because of subsection 56(6) in computing the taxpayer’s income for the taxation year or a preceding taxation year.
(2) Subsection (1) applies to repayments made after June 30, 2006.
175. (1) The definition “adjusted income” in subsection 122.5(1) of the Act is replaced by the following:
“adjusted income”
« revenu rajusté »
“adjusted income” of an individual, for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and as if no amount were deductible under paragraph 60(y) in computing that income.
(2) Subsection (1) applies to the 2006 and subsequent taxation years.
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