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.

• 176. (1) The definition “adjusted income” in section 122.6 of the Act is replaced by the following:

  “adjusted income”

  « revenu modifié »

  “adjusted income” of an individual for a taxation year means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year 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 if no amount were deductible under paragraph 60(y) in computing that income;

• (2) Subsection (1) applies to the 2006 and subsequent taxation years.

• 177. (1) The description of A in subsection 122.61(1) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

• (2) Subsection (1) applies in respect of overpayments that are deemed to arise during months that are after June 2007, and, for overpayments that are deemed to arise during months that are after June 2006 and before July 2007, the description of D in subsection 122.61(1) of the Act is to be read as follows:

  D

  is the product obtained by multiplying $249 by the number of qualified dependants who have attained the age of 6 years before the month and have not attained the age of 7 years before the month and in respect of whom the person is an eligible individual at the beginning of the month, and

• 178. (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

  “adjusted income”

  « revenu modifié »

  “adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under subsection 56(6) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w) or (y) in computing that income;

• (2) Subsection (1) applies to the 2006 and subsequent taxation years.

• 179. (1) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.2):

  • (vii.3) to an official solely for the purposes of the administration and enforcement of the Children’s Special Allowances Act or the evaluation or formation of policy for that Act,

  • (vii.4) to an official solely for the purposes of the administration and enforcement of the Universal Child Care Benefit Act or the evaluation or formation of policy for that Act,

• (2) Subparagraph 241(4)(d)(vii.3) of the Act, as enacted by subsection (1), applies after June 2003.

• (3) Subparagraph 241(4)(d)(vii.4) of the Act, as enacted by subsection (1), applies after June 2006.

R.S., O-9Old Age Security Act

180. The definition “income” in section 2 of the Old Age Security Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d):

Coming Into Force

Marginal note:Coming into force

181. This Part, other than sections 173 to 179, comes into force, or is deemed to have come into force, on July 1, 2006.

PART 7R.S., c. F-8; 1995, c. 17, s. 45(1)AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Marginal note:2005, c. 7, s. 1(1)

182. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

Marginal note:2005, c. 7, s. 1(1)

• 183. (1) Subsection 4.1(3) of the Act is replaced by the following:

  • Marginal note:Provincial allocation for fiscal year 2006-2007

    (2.1) The fiscal equalization payment referred to in paragraph (1)(b) shall be allocated to the provinces as follows:

    • (a) to Quebec, $5,539,296,000;

    • (b) to Nova Scotia, $1,385,539,000;

    • (c) to New Brunswick, $1,450,799,000;

    • (d) to Manitoba, $1,709,430,000;

    • (e) to British Columbia, $260,228,000;

    • (f) to Prince Edward Island, $291,262,000;

    • (g) to Saskatchewan, $12,723,000; and

    • (h) to Newfoundland and Labrador, $632,223,000.

  • Marginal note:Provincial allocation for subsequent fiscal years

    (3) With the approval of the Governor in Council, the fiscal equalization payments referred to in paragraph (1)(c) shall be allocated to each province in the proportion that the Minister considers appropriate. The approval of the Governor in Council shall be given once in respect of the three-month period beginning on April 1, 2007 and once in respect of each subsequent three-month period, within three months before the beginning of each of those periods.

• Marginal note:2005, c. 7, s. 1(1)

  (2) Subsection 4.1(4) of the Act is replaced by the following:

  • Marginal note:Upward adjustment of fiscal equalization payment for the fiscal year 2006-2007

    (3.1) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) exceeds the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, an amount equal to the difference may be paid to the province at the times and in the manner that the Minister considers appropriate.

  • Marginal note:Overpayment made to a province for the fiscal year 2006-2007

    (3.2) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) is less than the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, the Minister may recover the amount of that overpayment

    • (a) from any amount payable to the province under this Act in that fiscal year or as soon as possible after the end of that fiscal year; or

    • (b) from the province as a debt due to Her Majesty in right of Canada.

  • Marginal note:Time and manner of payment

    (4) The fiscal equalization payment shall be paid to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday.