Budget Implementation Act, 2006, No. 2 (S.C. 2007, c. 2)
Full Document:
Assented to 2007-02-21
22. (1) Paragraph 118.3(1)(b) of the Act is replaced by the following:
(b) the individual has filed for a taxation year with the Minister the certificate described in paragraph (a.2) or (a.3), and
(2) Subsection (1) applies to the 2005 and subsequent taxation years.
23. (1) Section 118.6 of the Act is amended by adding the following after subsection (2):
Marginal note:Post-secondary textbook credit
(2.1) If an amount may be deducted under subsection (2) in computing the individual’s tax payable for a taxation year, there may be deducted in computing the individual’s tax payable under this Part for the year the amount determined by the formula
A × B
where
- A
- is the appropriate percentage for the year; and
- B
- is the total of the products obtained when
(a) $65 is multiplied by the number of months referred to in paragraph (a) of the description of B in subsection (2), and
(b) $20 is multiplied by the number of months referred to in paragraph (b) of that description.
(2) The portion of subsection 118.6(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Students eligible for the disability tax credit
(3) In calculating the amount deductible under subsection (2) or (2.1), the reference in subsection (2) to “full-time student” is to be read as “student” if
(3) Subparagraph 118.6(3)(b)(iii) of the English version of the Act is replaced by the following:
(iii) an impairment with respect to the individual’s ability in feeding or dressing themself, by a medical doctor or an occupational therapist,
(iii.1) an impairment with respect to the individual’s ability in walking, by a medical doctor, an occupational therapist or a physiotherapist, or
(4) Subparagraph 118.6(3)(b)(iv) of the French version of the Act is replaced by the following:
(iv) s’il s’agit d’une déficience quant à la capacité de s’alimenter ou de s’habiller, un médecin en titre ou un ergothérapeute,
(iv.1) s’il s’agit d’une déficience quant à la capacité de marcher, un médecin en titre, un ergothérapeute, ou un physiothérapeute,
(5) Subparagraph 118.6(3)(b)(iv) of the English version of the Act is replaced by the following:
(iv) an impairment with respect to the individual’s ability in mental functions necessary for everyday life (within the meaning assigned by paragraph 118.4(1)(c.1)), by a medical doctor or a psychologist.
(6) Subparagraph 118.6(3)(b)(v) of the French version of the Act is replaced by the following:
(v) s’il s’agit d’une déficience des fonctions mentales nécessaires aux activités de la vie courante, un médecin en titre ou un psychologue.
(7) Subsections (1) and (2) apply to the 2006 and subsequent taxation years.
(8) Subsections (3) and (4) apply to the 2005 and subsequent taxation years in respect of certifications made by a physiotherapist after February 22, 2005.
(9) Subsections (5) and (6) apply to the 2005 and subsequent taxation years.
24. (1) Subsection 118.61(1) of the Act is replaced by the following:
Marginal note:Unused tuition, textbook and eduction tax credits
118.61 (1) In this section, an individual’s unused tuition, textbook and education tax credits at the end of a taxation year is the amount determined by the formula
A + (B - C) - (D + E)
where
- A
- is the amount determined under this subsection in respect of the individual at the end of the preceding taxation year;
- B
- is the total of all amounts each of which may be deducted under section 118.5 or 118.6 in computing the individual’s tax payable under this Part for the year;
- C
- is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.3 and 118.7);
- D
- is the amount that the individual may deduct under subsection (2) for the year; and
- E
- is the tuition, textbook and education tax credits transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent.
(2) Paragraphs 118.61(2)(a) and (b) of the Act are replaced by the following:
(a) the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and
(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.3 and 118.7).
(3) Subsection 118.61(3) of the Act is repealed.
(4) Subsection 118.61(4) of the Act is replaced by the following:
Marginal note:Change of appropriate percentage
(4) For the purpose of determining the amount that may be deducted under subsection (2) or 118.6(2.1) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula
A/B × C
where
- A
- is the appropriate percentage for the current taxation year;
- B
- is the appropriate percentage for the preceding taxation year; and
- C
- is the amount that would be the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection.
(5) Subsections (1) to (3) apply to the 2006 and subsequent taxation years except that
(a) in its application to the 2006 taxation year, the description of C in subsection 118.61(1) of the Act, as enacted by subsection (1), is to be read without its reference to section 118.03; and
(b) in its application to the 2006 taxation year, paragraph 118.61(2)(b) of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03.
(6) Subsection (4) applies to the 2005 and subsequent taxation years, except that for the 2005 and 2006 taxation years, the references to “unused tuition, textbook and education tax credits” in subsection 118.61(4) of the Act, as enacted by subsection (4), are to be read as references to “unused tuition and education tax credits”.
25. (1) The description of A in section 118.8 of the Act is replaced by the following:
- A
- is the tuition, textbook and education tax credits transferred for the year by the spouse or common-law partner to the individual;
(2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following:
(ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under section 118, 118.01, 118.02, 118.03, 118.3, 118.61 or 118.7).
(3) Subsection (1) applies to the 2006 and subsequent taxation years.
(4) Subsection (2) applies to the 2005 and subsequent taxation years except that
(a) in its application to the 2005 taxation year, subparagraph (b)(ii) of the description of C in section 118.8 of the Act, as enacted by subsection (2), is to be read without its reference to section 118.02; and
(b) in its application to the 2005 and 2006 taxation years, subparagraph (b)(ii) of the description of C in section 118.8 of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03.
26. (1) The portion of section 118.81 of the Act before paragraph (a) is replaced by the following:
Marginal note:Tuition, textbook and education tax credits transferred
118.81 In this subdivision, the tuition, textbook and education tax credits transferred for a taxation year by a person to an individual is the lesser of
(2) The description of B in paragraph 118.81(a) of the Act is replaced by the following:
- B
- is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118, 118.01, 118.02, 118.03, 118.3, 118.61 and 118.7), and
(3) Subsections (1) and (2) apply to the 2006 and subsequent taxation years except that, in its application to the 2006 taxation year, the description of B in paragraph 118.81(a) of the Act, as enacted by subsection (2), is to be read without its reference to section 118.03.
27. (1) Section 118.9 of the Act is replaced by the following:
Marginal note:Transfer to parent or grandparent
118.9 If for a taxation year a parent or grandparent of an individual (other than an individual in respect of whom the individual’s spouse or common-law partner deducts an amount under section 118 or 118.8 for the year) is the only person designated in writing by the individual for the year for the purpose of this section, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition, textbook and education tax credits transferred for the year by the individual to the parent or grandparent, as the case may be.
(2) Subsection (1) applies to the 2006 and subsequent taxation years.
- Date modified: