Budget Implementation Act, 2006, No. 2 (S.C. 2007, c. 2)
Full Document:
Assented to 2007-02-21
18. (1) Paragraphs 117(2)(c) and (d) of the Act, as enacted by subsection 58(3) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, are replaced by the following:
(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 $118,285, 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 $118,285, 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 $118,285.
(2) Subsection (1) applies to the 2007 and subsequent taxation years.
19. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Annual adjustment (indexing)
117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s) and each of the amounts expressed in dollars in subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1), subsections 118.3(1), 122.5(3) and 122.51(1) and (2) and Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of
(2) Subsection (1) applies to the 2008 and subsequent taxation years.
20. (1) The portion of the description of B before paragraph (a) in subsection 118(3) of the Act is replaced by the following:
- B
- is the lesser of $2,000 and
(2) Section 118 of the Act is amended by adding the following after subsection (9):
Marginal note:Canada Employment Credit
(10) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the taxation year; and
- B
- is the lesser of
(a) $1,000, and
(b) the amount that would be the individual’s income for the taxation year from all offices and employments if this Act were read without reference to section 8.
(3) Subsections (1) and (2) apply to the 2006 and subsequent taxation years, except that in its application to the 2006 taxation year, the reference to “$1,000” in paragraph (a) in the description of B in subsection 118(10) of the Act, as enacted by subsection (2), shall be read as a reference to “$250”.
21. (1) The Act is amended by adding the following after section 118.01:
Marginal note:Definitions
118.02 (1) The following definitions apply in this section.
“eligible public transit pass”
« laissez-passer de transport admissible »
“eligible public transit pass” means a document
(a) issued by or on behalf of a qualified Canadian transit organization; and
(b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days.
“public commuter transit services”
« services de transport en commun »
“public commuter transit services” means services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure.
“qualified Canadian transit organization”
« organisme de transport canadien admissible »
“qualified Canadian transit organization” means a person authorised, under a law of Canada or a province, to carry on in Canada a business that is the provision of public commuter transit services, which is carried on through a permanent establishment in Canada.
“qualifying relation”
« proche admissible »
“qualifying relation” of an individual for a taxation year means a person who is
(a) the individual’s spouse or common-law partner at any time in the taxation year; or
(b) a child of the individual who has not, during the taxation year, attained the age of 19 years.
Marginal note:Transit pass tax credit
(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the taxation year; and
- B
- is the amount determined by the formula
C - D
where
- C
- is the total of all amounts each of which is the portion of the cost of an eligible public transit pass attributable to the use of public commuter transit services in the taxation year by the individual or by a person who is in the taxation year a qualifying relation of the individual, and
- D
- is the total of all amounts each of which is the amount of a reimbursement, allowance or any other form of assistance that any person is or was entitled to receive in respect of an amount included in computing the value of C (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).
Marginal note:Apportionment of credit
(3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that eligible public transit pass if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
Marginal note:Definitions
118.03 (1) The following definitions apply in this section.
“eligible fitness expense”
« dépense admissible pour activités physiques »
“eligible fitness expense” in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a qualifying entity that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in a program of prescribed physical activity and, for the purposes of this section, that cost
(a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and
(b) does not include
(i) the cost of accommodation, travel, food or beverages, or
(ii) any amount deductible under section 63 in computing any person’s income for any taxation year.
“qualifying child”
« enfant admissible »
“qualifying child” of an individual for a taxation year means a child of the individual who had not, before the taxation year, attained the age of 16 years.
“qualifying entity”
« entité admissible »
“qualifying entity” means a person or partnership that offers one or more programs of prescribed physical activity.
Marginal note:Child fitness tax credit
(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the taxation year; and
- B
- is the total of all amounts each of which is, in respect of a qualifying child of the individual for the taxation year, the lesser of $500 and the amount determined by the formula
C - D
where
- C
- is total of all amounts each of which is an amount paid in the taxation year by the individual, or by the individual’s spouse or common law partner, that is an eligible fitness expense in respect of the qualifying child of the individual, and
- D
- is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value of C in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).
Marginal note:Apportionment of credit
(3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount for the year under this section in respect of that qualifying child, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(2) Section 118.02 of the Act, as enacted by subsection (1), applies to the 2006 and subsequent taxation years, in respect of the use of public commuter transit services after June 2006.
(3) Section 118.03 of the Act, as enacted by subsection (1), applies to the 2007 and subsequent taxation years.
- Date modified: