Budget Implementation Act, 2006 (S.C. 2006, c. 4)
Full Document:
Assented to 2006-06-22
52. (1) Clause 53(1)(e)(i)(A) of the Act is replaced by the following:
(A) paragraphs 38(a.1) and (a.2) and the fractions set out in the formula in paragraph 14(1)(b) and in subsection 14(5), paragraph 38(a) and subsection 41(1),
(2) Subsection (1) applies after May 1, 2006.
53. (1) Clauses (ii)(F) to (H) of the description of A in paragraph 64(a) of the Act are replaced by the following:
(F) where the taxpayer has an impairment in physical or mental functions, for the cost of note-taking services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services,
(G) where the taxpayer has an impairment in physical functions, for the cost of voice recognition software, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software,
(H) where the taxpayer has a learning disability or an impairment in mental functions, for the cost of tutoring services that are rendered to, and supplementary to the primary education of, the taxpayer and to a person ordinarily engaged in the business of providing such services to individuals who are not related to the person, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services,
(2) Subparagraph (ii) of the description of A in paragraph 64(a) of the Act is amended by striking out the word “and” at the end of clause (I) and by adding the following after clause (J):
(K) where the taxpayer has a severe and prolonged impairment in physical or mental functions, for the cost of job coaching services (not including job placement or career counselling services) and to a person engaged in the business of providing such services if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services,
(L) where the taxpayer is blind or has a severe learning disability, for the cost of reading services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment or disability, requires those services,
(M) where the taxpayer is blind and profoundly deaf, for the cost of deaf-blind intervening services and to a person engaged in the business of providing such services,
(N) where the taxpayer has a speech impairment, for the cost of a device that is a Bliss symbol board, or a similar device, that is prescribed by a medical practitioner to help the taxpayer communicate by selecting the symbols or spelling out words,
(O) where the taxpayer is blind, for the cost of a device that is a Braille note-taker, prescribed by a medical practitioner, to allow the taxpayer to take notes (that can, by the device, be read back to them or printed or displayed in Braille) with the help of a keyboard,
(P) where the taxpayer has a severe and prolonged impairment in physical functions that markedly restricts their ability to use their arms or hands, for the cost of a device that is a page turner prescribed by a medical practitioner to help the taxpayer to turn the pages of a book or other bound document, and
(Q) where the taxpayer is blind, or has a severe learning disability, for the cost of a device or software that is prescribed by a medical practitioner and designed to enable the taxpayer to read print,
(3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years.
54. (1) Subsection 67.1(1) of the Act is replaced by the following:
Marginal note:Expenses for food, etc.
67.1 (1) For the purposes of this Act, other than sections 62, 63, 118.01 and 118.2, an amount paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment is deemed to be 50% of the lesser of
(a) the amount actually paid or payable in respect thereof, and
(b) an amount in respect thereof that would be reasonable in the circumstances.
(2) Subsection (1) applies to the 2005 and subsequent taxation years.
55. (1) Subsection 87(2) of the Act is amended by adding the following before paragraph (t):
Marginal note:Tax deferred cooperative shares
(s) for the purpose of section 135.1, if the new corporation is, at the beginning of its first taxation year, an agricultural cooperative corporation (within the meaning assigned by subsection 135.1(1)),
(i) the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation that was an agricultural cooperative corporation at the end of the predecessor corporation’s last taxation year, and
(ii) if, on the amalgamation, the new corporation issues a share (in this subparagraph referred to as the “new share”) that is described in all of paragraphs (b) to (d) of the definition “tax deferred cooperative share” in subsection 135.1(1) to a taxpayer in exchange for a share of a predecessor corporation (in this subparagraph referred to as the “old share”) that was, at the end of the predecessor corporation’s last taxation year, a tax deferred cooperative share within the meaning assigned by that definition, and the amount of paid-up capital, and the amount, if any, that the taxpayer is entitled to receive on a redemption, acquisition or cancellation, of the new share are equal to those amounts, respectively, in respect of the old share,
(A) the new share is deemed to have been issued at the time the old share was issued, and
(B) in applying subsection 135.1(2), the taxpayer is deemed to have disposed of the old share for nil proceeds;
(2) Subsection (1) applies after 2005.
56. (1) The portion of paragraph 110(1)(d.01) of the Act before subparagraph (i) is replaced by the following:
Marginal note:Charitable donation of employee option securities
(d.01) subject to subsection (2.1), where the taxpayer disposes of a security acquired in the year by the taxpayer under an agreement referred to in subsection 7(1) by making a gift of the security to a qualified donee (other than a private foundation), an amount in respect of the disposition of the security equal to 1/2 of the lesser of the benefit deemed by paragraph 7(1)(a) to have been received by the taxpayer in the year in respect of the acquisition of the security and the amount that would have been that benefit had the value of the security at the time of its acquisition by the taxpayer been equal to the value of the security at the time of the disposition, if
(2) Subsection (1) applies to gifts made after May 1, 2006.
57. (1) Paragraph 111(1)(a) of the Act is replaced by the following:
Marginal note:Non-capital losses
(a) non-capital losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year;
(2) Paragraphs 111(1)(c) and (d) of the Act are replaced by the following:
Marginal note:Restricted farm losses
(c) restricted farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year, but no amount is deductible for the year in respect of restricted farm losses except to the extent of the taxpayer’s incomes for the year from all farming businesses carried on by the taxpayer;
Marginal note:Farm losses
(d) farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year; and
(3) The portion of the definition “non-capital loss” in subsection 111(8) of the Act before the description of F is replaced by the following:
“non-capital loss”
« perte autre qu’une perte en capital »
“non-capital loss” of a taxpayer for a taxation year means, at any time, the amount determined by the formula
(A + B) - (D + D.1 + D.2)
where
- A
- is the amount determined by the formula
E - F
where
- E
- is the total of all amounts each of which is
(a) the taxpayer’s loss for the year from an office, employment, business or property,
(b) an amount deducted under paragraph (1)(b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g), (j) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or
(c) if that time is before the taxpayer’s eleventh following taxation year, the taxpayer’s allowable business investment loss for the year, and
(4) Subsections (1) to (3) apply in respect of losses that arise in the 2006 and subsequent taxation years.
58. (1) Subsection 117(2) of the Act is replaced by the following:
Marginal note:Rates for the 2005 taxation year
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2005 taxation year is
(a) 15% of the amount taxable, if the amount taxable is equal to or less than $35,595;
(b) $5,339 plus 22% of the amount by which the amount taxable exceeds $35,595, if the amount taxable is greater than $35,595 and is equal to or less than $71,190;
(c) $13,170 plus 26% of the amount by which the amount taxable exceeds $71,190, if the amount taxable is greater than $71,190 and is equal to or less than $115,739; and
(d) $24,753 plus 29% of the amount by which the amount taxable exceeds $115,739, if the amount taxable is greater than $115,739.
(2) Subsection 117(2) of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Rates for the 2006 taxation year
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for the 2006 taxation year is
(a) 15.25% of the amount taxable, if the amount taxable is equal to or less than $36,378;
(b) $5,548 plus 22% of the amount by which the amount taxable exceeds $36,378, if the amount taxable is greater than $36,378 and is equal to or less than $72,756;
(c) $13,551 plus 26% of the amount by which the amount taxable exceeds $72,756 if the amount taxable is greater than $72,756 and is equal to or less than $118,285; and
(d) $25,388 plus 29% of the amount by which the amount taxable exceeds $118,285, if the amount taxable is greater than $118,285.
(3) Subsection 117(2) of the Act, as enacted by subsection (2), is replaced by the following:
Marginal note:Rates for taxation years after 2006
(2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this subdivision referred to as the “amount taxable”) for a taxation year is
(a) 15.5% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $36,378;
(b) if the amount taxable is greater than the amount determined for the year in respect of $36,378 and is equal to or less than the amount determined for the year in respect of $72,756, the amount determined in respect of the taxation year under paragraph (a) plus 22% of the amount by which the amount taxable exceeds the amount determined in respect of $36,378 for the year;
(c) if the amount taxable is greater than the amount determined for the year in respect of $72,756, but is equal to or less than the amount determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a) and (b) plus 26% of the amount by which the amount taxable exceeds the amount determined in respect of $72,756; and
(d) if the amount taxable is greater than the amount that would be determined for the year in respect of $118,825, the total of the amounts determined in respect of the taxation year under paragraphs (a), (b) and (c) plus 29% of the amount by which the amount taxable exceeds the amount determined in respect of $118,825.
(4) Subsection (1) applies to the 2005 taxation year.
(5) Subsection (2) applies to the 2006 taxation year.
(6) Subsection (3) applies to the 2007 and subsequent taxation years.
- Date modified: